Gibraltar and ADI Foundation forge strategic alliance for multi-currency stablecoin infrastructure
A landmark collaboration between Gibraltar's Government and ADI Foundation establishes the framework for a regulated digital financial ecosystem connecting Europe, the Middle East and Africa through fully reserved stablecoins.
The Government of Gibraltar and ADI Foundation have entered into a Memorandum of Understanding to explore the establishment of a multi-currency stablecoin consortium, representing a substantial advancement in the creation of regulated digital financial infrastructure that will serve to connect international markets with unprecedented sophistication and security.
Under the terms of this strategic agreement, ADI Foundation will undertake comprehensive exploration of opportunities surrounding the formation of a consortium comprised of founding members drawn from banks and other institutions licensed in Gibraltar. This consortium will endeavour to develop fully reserved digital currencies denominated in sterling, the US dollar and the Euro, utilising issuance infrastructure provided through ADI Chain, the GCC and MENA region’s inaugural sovereign digital infrastructure expressly designed to serve governments and institutions.
The consortium structure is conceived on an open and equitable basis, with ownership distributed fairly amongst ADI Foundation and participating founding members. Each digital currency will be issued through a distinct entity, with reserves maintained on a one for one basis in high quality liquid assets denominated in the respective reference currency. These reserves will be independently attested and subjected to rigorous annual audit, ensuring the highest standards of transparency and financial integrity.
Gibraltar’s pioneering regulatory landscape, which introduced the world’s first purpose built framework for distributed ledger technology in 2018, positions the jurisdiction as an exceptional partner for this transformative initiative. Beyond the issuance of digital currencies, the project is designed to facilitate institutional settlement, expedite cross border payments and advance international trade. The longer term vision encompasses the opportunity to establish a digital settlement bridge connecting Europe and Africa, building upon ADI Foundation’s existing joint venture with the Secretariat of the African Continental Free Trade Area to develop digital trade infrastructure across its member states.
Ajay Bhatia, Principal Council Member at ADI Foundation, articulated the ambition underlying this collaboration, emphasising that the endeavour transcends the mere launch of a stablecoin. Rather, the objective centres upon exploring the construction of regulated financial infrastructure that will enable digital money to traverse seamlessly between institutions, markets and economies. He observed that Gibraltar’s sophisticated financial ecosystem and distinguished experience in distributed ledger technology, combined with ADI’s infrastructure and international network, create the ideal foundations for establishing a new digital settlement bridge of regional and global significance.
Nigel Feetham KC MP, Minister for Justice, Trade and Industry, characterised the Stablecoin Project as an exciting opportunity for Gibraltar, representing another meaningful step in the jurisdiction’s endeavours to foster innovation and attract investment. He emphasised that this initiative builds upon recent legislative developments that reinforce Gibraltar’s position as a leading international centre for the digital economy.
ADI Foundation and the Government of Gibraltar will conduct detailed exploration regarding the potential establishment of the consortium’s management, operations and compliance functions within Gibraltar, including engagement opportunities with Gibraltar’s licensed financial institutions. The parties will also assess the regulatory pathway towards potential future issuance, contingent upon commercial viability, the participation of founding members and all requisite regulatory authorisations.
Source: WAM