October 17, 2025
A step towards institutional clarity and scalable staking in Abu Dhabi
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has released Consultation Paper No. 10 of 2025, introducing a proposed framework to regulate the staking of virtual assets (VAs). The paper invites public feedback on how staking may be undertaken by authorised firms within ADGM under a defined regulatory perimeter.
This consultation represents a significant milestone in the UAE’s approach to digital asset regulation. By outlining clear permissions and obligations for entities conducting staking, the FSRA aims to balance market innovation with investor protection while cementing ADGM’s position as a forward-looking jurisdiction for institutional digital assets.
Who is the FSRA and how does it relate to ADGM?
The Financial Services Regulatory Authority (FSRA) is the independent financial regulator of the Abu Dhabi Global Market (ADGM), which is one of the UAE’s leading international financial centres. Established on Al Maryah Island, the ADGM operates as a distinct jurisdiction within the UAE, with its own civil and commercial laws based on English common law.
The FSRA is responsible for licensing, supervising, and enforcing financial services and market activities within ADGM. Its remit includes banking, asset management, virtual assets, and market infrastructure. By introducing specific frameworks for emerging sectors such as digital assets and decentralised finance (DeFi), the FSRA plays a central role in shaping the UAE’s broader ambition to become a globally recognised hub for regulated financial innovation.
This consultation on virtual asset staking reflects the FSRA’s proactive approach to regulating frontier technologies in a way that safeguards market integrity while enabling institutional growth.
When staking becomes a regulated activity
Under the proposed framework, staking becomes a regulated activity when an authorised person holds or controls client virtual assets for the purpose of staking. Only firms with a Financial Services Permission (FSP) to Provide Custody or Manage Assets for virtual assets will be permitted to stake client funds.
Virtual Asset Custodians may only stake client assets following explicit client instruction.
Virtual Asset Managers may stake client assets on a discretionary basis, provided they hold the appropriate permissions.
Solo stakers acting on their own behalf, and technical service providers that do not hold or control client assets, fall outside the scope of regulation.
The FSRA has also clarified that this framework does not cover other yield-generating activities such as liquidity mining, yield farming, or the issuance of liquid staking tokens (LSTs). However, the authority continues to monitor developments in these areas and may introduce a separate regime in future.
Obligations for authorised firms
Authorised Persons engaging in staking with client-held assets must comply with all existing ADGM Conduct of Business (COBS) and Anti-Money Laundering (AML) rules, alongside new staking-specific requirements. These include:
Due diligence on staking service providers and any associated smart contracts.
Formal written agreements with staking service providers, defining ownership, roles, and performance standards.
Transparent disclosures outlining material risks and fees to clients.
Regular client reporting, identifying which assets are staked and under what conditions.
Prior FSRA non-objection before commencing staking activities.
The FSRA has opted not to mandate insurance against validator slashing or staking-related losses at this stage but may consider such measures later as international best practices develop.
Why this matters for the institutional market
The proposed framework introduces long-awaited regulatory clarity around an activity that has until now operated in a largely unregulated space. For institutional custodians, fund managers, and infrastructure providers, it provides a formal pathway to integrate staking into compliant business models.
By delineating when staking crosses into regulated activity, the FSRA is addressing long-standing concerns around custody, discretion, and risk transparency. The result is a clearer foundation for institutional participation in proof-of-stake networks, creating conditions for sustainable market growth.
This aligns ADGM with other progressive jurisdictions such as Singapore and Hong Kong, both of which have moved to define staking within their broader digital asset regimes. It also positions Abu Dhabi as a credible hub for regulated blockchain yield activities at a time when institutions are seeking dependable ways to earn returns on tokenised assets.
TruFin’s perspective
At TruFin, we view ADGM’s proposal as a turning point for institutional staking. The FSRA’s measured approach, focused on due diligence, client protection, and operational transparency, reflects a maturing intersection between decentralised infrastructure and regulated finance.
For market participants, this means staking can evolve from a purely technical process into a recognised yield function embedded within the compliance and custody frameworks institutions already rely on.
While the current consultation paper does not yet cover liquid staking tokens (LSTs), we expect future iterations of the framework to build upon this foundation to address tokenised staking models. These mechanisms - which combine the security of underlying validator operations with onchain liquidity - represent a natural progression in how staking yield can be accessed and integrated across financial systems.
As one of the first jurisdictions to define staking with such precision, ADGM is setting a benchmark for how regulators can enable innovation without compromising integrity. It is a model that will help bridge traditional finance and blockchain-native yield strategies, an area where TruFin continues to build the infrastructure for institutional adoption.
What happens next
The FSRA is accepting written feedback on Consultation Paper No. 10 of 2025 until 31 October 2025. Following the consultation period, the regulator will review submissions and finalise the rules.
Stakeholders including custodians, asset managers, exchanges, and infrastructure providers should review the consultation in detail, assess whether they meet the proposed thresholds, and prepare for the operational implications of the new framework.
Partner with TruFin to shape the future of institutional staking
As the ADGM’s proposed framework brings greater regulatory clarity to virtual asset staking, institutions have a unique opportunity to define how compliant, on-chain yield becomes part of modern portfolio strategy.
At TruFin, we are building the infrastructure that connects traditional finance with blockchain-based yield opportunities. Our institutional-grade liquid staking products are designed to meet regulatory standards across multiple networks while maintaining transparency, security, and liquidity.
We invite regulated entities and institutional investors to connect with us to explore how staking and tokenised yield products can integrate safely into your operations.
Contact TruFin to discuss how our multi-chain liquid staking solutions align with your institutional needs.