New Zealand’s FMA has given its ruling on NZDD stablecoin.
The Financial Markets Authority has released an updated FMC (Financial Markets Conduct) notice on the state of the NZDD stablecoin, declaring it not a financial product. The regulator has labelled the New Zealand dollar-backed stablecoin as a payment instrument.
NZDD is issued by ECDD Holdings Limited and has been declared as a non-yield permitted stablecoin, meaning that no direct interest shall be paid out to holders by the issuer. It currently runs on Base, Polygon and Ethereum networks with a supply of 775K NZD (per issuer docs).
Additionally, the regulator has announced a continuation of its ongoing sandbox intended to encourage the adoption of newer technology innovation for fintechs. This includes helping companies with more flexible licenses, as well as reviews of tokenisation related services.
