Officials from the capital of the United Arab Emirates believe that FRTs belong to the category of digital assets that should not only be backed by high-quality liquid reserves denominated in the same currency as the FRTs, but also have the ability to be quickly liquidated with minimal adverse price losses for holders.
The FSRA proposes that FRT issuers ensure that the market value of reserve assets is maintained at the par value of all FRT in circulation, subject to a daily revaluation of reserves at the end of each business day. In addition, the regulator proposes that issuers of two or more FRT tokens manage and maintain separate pools of reserve assets for each of those tokens.
The agency is ready to accept proposals from all interested parties until October 3, 2024.
Earlier, the Abu Dhabi Financial Services Authority granted permission to Paxos International, the UAE subsidiary of fintech corporation Paxos, to issue the Lift Dollar (USDL) stablecoin. The Lift Dollar is pegged 1:1 to the dollar value of short-term U.S. Treasury bills and pays interest daily.
Source: Bits
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