Tunis:The Government of Gibraltar and the ADI Foundation have entered into a Memorandum of Understanding (MoU) to investigate the creation of a multi-currency stablecoin consortium. This initiative aims to establish regulated digital financial infrastructure to connect international markets.
According to Emirates News Agency, the MoU outlines that the ADI Foundation will explore the formation of a consortium with founding members from banks and other institutions licensed in Gibraltar. The goal is to develop digital currencies that are fully reserved and referenced to sterling, the US dollar, and the Euro. These currencies will be issued through ADI Chain, which is the first sovereign digital infrastructure in the GCC and MENA regions designed for governments and institutions.
The consortium is intended to operate on a fair and open basis, with ownership shared among ADI and its founding members. Each currency will be issued by a separate entity, ensuring reserves are held one-for-one in high-quality liquid assets denominated in the respective reference currency. These reserves will be independently attested and subject to an annual audit.
Gibraltar, the first jurisdiction to implement regulatory frameworks for distributed ledger technology in 2018, sees this project as an opportunity to support institutional settlement, cross-border payments, and international trade. The project also aims to connect Europe and Africa, leveraging ADI Foundation's partnership with the African Continental Free Trade Area (AfCFTA) to develop digital trade infrastructure.
Ajay Bhatia, Principal Council Member at ADI Foundation, emphasized the project's ambition to create a regulated financial infrastructure for seamless digital money movement across institutions and markets. He highlighted Gibraltar's advanced financial ecosystem and experience in DLT, which combined with ADI's infrastructure and network, aims to build a digital settlement bridge linking Europe, the Middle East, and Africa.
Nigel Feetham KC MP, Gibraltar's Minister for Justice, Trade and Industry, described the project as a significant opportunity for Gibraltar to foster innovation and attract investment. It also reinforces Gibraltar's standing as a leading digital economy hub.
The ADI Foundation and the Government of Gibraltar will evaluate the consortium's potential management, operations, and compliance functions within Gibraltar. They will also consider the pathway to potential future issuance, pending commercial viability, participation from founding members, and required regulatory authorizations.