UAE based ADI Chain and Government of Gibraltar to establish stablecoin consortium

Government of Gibraltar and ADI Foundation have signed a Memorandum of Understanding to explore establishing a multi-currency stablecoin consortium, where ADI Foundation will further explore opportunities around setting up a consortium alongside founding members drawn from banks and other institutions licensed in Gibraltar to develop fully reserved digital currencies referenced to sterling, the US dollar and the Euro.

The issuance infrastructure will be provided through ADI Chain. The initiative focuses on bringing digital money on-chain at institutional scale, strengthening Gibraltar as the home for a responsibly operated, fully reserved currency referenced stablecoin (including sterling) under its own bespoke framework; Gibraltar was the first jurisdiction to introduce a purpose-built regulatory framework for distributed ledger technology in 2018.

The consortium exploration is intended to be structured on an open and equitable basis, with ownership shared fairly among ADI and participating founding members. Each digital currency would be issued through a separate entity, with reserves held one-for-one in high-quality liquid assets denominated in the respective reference currency, independently attested and subject to annual audit.

Beyond issuance, the Project is designed to support institutional settlement, cross-border payments and international trade, with a longer-term opportunity to connect Europe and Africa. This builds on ADI Foundation’s joint venture with the Secretariat of the African Continental Free Trade Area (AfCFTA) to develop digital trade infrastructure across its member states.

Ajay Bhatia, Principal Council Member at ADI Foundation, noted that this is bigger than launching another stablecoin. He explains, ” Our ambition is to explore building a regulated financial infrastructure that allows digital money to move seamlessly between institutions, markets and economies. Gibraltar brings a sophisticated financial ecosystem and pioneering experience in DLT, while ADI brings the infrastructure and international network. Together, we are exploring building the foundations for a new digital settlement bridge connecting Europe, the Middle East and Africa.”

The Hon Nigel Feetham KC MP, Minister for Justice, Trade and Industry, Gibraltar added that they have been actively engaged in international outreash programs connecting with leading digital-finance businesses and investors, including at major industry events around the world.

He adds, “The Stablecoin Project represents an exciting opportunity for Gibraltar and is another important step in our efforts to foster innovation and attract investment. It builds on recent legislative initiatives, including a world-first bespoke prediction market regime and legislation facilitating tokenised fund shares and DLT-based share registers, alongside further legislative developments currently underway, and reinforces Gibraltar’s position as a leading international centre for the digital economy.”