FMA says NZDD stablecoin not a financial product

New Zealand’s financial regulator has ruled that a local currency‑tied stablecoin, NZDD, isn’t a financial product, a designation the regulator linked directly to a fintech sandbox pilot. The Financial Markets Authority said the stablecoin "is not a debt security, as the NZDD stablecoin is not an investment, and no income, interest or other gain is paid to the NZDD stablecoin holder." Law firm MinterEllisonRuddWatts, which acted for NZDD issuer ECDD Holdings in the sandbox, described the decision as an important step toward regulatory certainty.

The firm cautioned that "the designation relates to a specific product and version of a stablecoin" and "does not constitute a general determination as to the regulatory treatment of all stablecoins," while also calling the move a pragmatic approach consistent with comparable jurisdictions.

The FMA said it plans to expand the sandbox by introducing an on‑ramp or restricted licence for fintech firms. "Our financial system is changing faster than ever before.

New Zealand

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