UAE-based ADI Foundation and the Government of Gibraltar have signed a Memorandum of Understanding (MoU) to explore the establishment of a multi-currency stablecoin consortium aimed at supporting institutional digital payments, cross-border transactions and international trade.
Under the proposed initiative, ADI Foundation will examine opportunities to form a consortium with founding members comprising banks and other financial institutions licensed in Gibraltar. The consortium would focus on developing fully reserved stablecoins pegged to the British pound sterling, US dollar and euro.
ADI Chain will provide the blockchain infrastructure required to issue the proposed digital currencies, supporting the development of regulated digital financial services at an institutional scale.
The initiative is also expected to strengthen Gibraltar’s position as a centre for responsibly managed, fully reserved stablecoins operating under a dedicated regulatory framework. Gibraltar became the first jurisdiction to introduce a purpose-built regulatory framework for distributed ledger technology (DLT) in 2018.
Consortium to Focus on Transparency and Financial Stability
The proposed consortium would operate under an open and equitable ownership structure, with participation shared fairly between ADI Foundation and its founding institutional partners.
Each stablecoin would be issued through a separate legal entity, with reserves maintained on a one-to-one basis in high-quality liquid assets denominated in the corresponding reference currency.
To strengthen transparency and financial accountability, the reserves would undergo independent attestation and annual audits.
Beyond stablecoin issuance, the project aims to develop financial infrastructure supporting institutional settlements, international payments and global trade transactions.
The longer-term vision includes establishing stronger digital financial connections between Europe and Africa, while potentially expanding payment connectivity across the Middle East.
The initiative builds on ADI Foundation’s existing joint venture with the Secretariat of the African Continental Free Trade Area (AfCFTA), which focuses on developing digital trade infrastructure across African member states.
ADI Foundation Sees Opportunity for International Digital Settlement Network
Ajay Bhatia, Principal Council Member at ADI Foundation, said the proposed partnership represents a broader effort to develop regulated financial infrastructure rather than simply introduce another stablecoin.
Bhatia explained that the initiative aims to enable digital currencies to move efficiently between financial institutions, markets and economies.
He highlighted Gibraltar’s established financial services ecosystem and experience in distributed ledger technology, alongside ADI Foundation’s blockchain infrastructure and international partnerships, as important strengths supporting the proposed collaboration.
According to Bhatia, the initiative could help establish the foundations of a digital settlement network connecting Europe, the Middle East and Africa.
Gibraltar Aims to Strengthen Position as Global Digital Finance Hub
The Hon Nigel Feetham KC MP, Gibraltar’s Minister for Justice, Trade and Industry, welcomed the initiative as another opportunity to attract investment and encourage financial technology innovation.
Feetham noted that Gibraltar has been actively engaging with international digital finance companies and investors through outreach programmes and participation in major industry events worldwide.
He said the proposed stablecoin project aligns with the government’s wider strategy to establish Gibraltar as a leading international centre for digital financial services.
The minister also highlighted recent legislative developments, including Gibraltar’s bespoke regulatory regime for prediction markets and legislation supporting tokenised investment fund shares and DLT-based share registers.
Further legislative initiatives are also being developed to support the jurisdiction’s evolving digital economy.
Proposed Stablecoins Could Support Cross-Border Trade and Payments
If established, the consortium could provide financial institutions with blockchain-based settlement infrastructure designed to facilitate payments across multiple currencies.
The proposed use of fully backed digital currencies could support more efficient institutional transactions while maintaining reserve transparency and regulatory oversight.
The collaboration also reflects growing interest in regulated stablecoin infrastructure as financial institutions explore blockchain technology for international settlements and trade finance.
However, the agreement remains at the exploratory stage. The signing of the MoU does not constitute confirmation that the consortium has been formally established or that the proposed stablecoins have been approved or issued.
The next phase will focus on evaluating the consortium’s structure, potential institutional participation and opportunities to develop the proposed digital currency infrastructure.
