Advancing Digital Trade 2025

traditional FX intermediaries. It highlighted the potential of tokenized assets to support faster, more transparent and cost-effective foreign exchange for global traders. –Supply chain financing via GSBN: Collaborating with the Global Shipping Business Network (GSBN), Medad tested how OvUSD could provide working capital financing against electronic bills of lading (eBLs). By tokenizing and verifying logistics documents, OvUSD enabled lenders to offer real-time, programmable funding tied to verified supply chain events. The result enhanced liquidity without increasing credit risk. –Smart escrow via XTRAA: In partnership with XTRAA, Medad deployed programmable escrow contracts backed by NFT-based digital trade documents. These contracts ensured conditional, automated release of funds based on predefined trade milestones, such as cargo delivery confirmation. This use case illustrated how smart contracts can enhance trust and efficiency in international trade by reducing disputes and manual intervention. Each use case was designed to test different aspects of stablecoin functionality in trade, from integration with enterprise systems to real-time settlement and programmable trade logic. Main findings The testing demonstrated that OvUSD could be successfully issued on both Ethereum and Stellar blockchains and integrated with institutional systems. An important feature of the solution was its ability to generate yield during transaction windows, due to its integration with Franklin Templeton’s tokenized Money Market Fund (BENJI), which manages deposited capital and distributes daily yield. Franklin Templeton played a dual role in the testing: not only as the asset manager responsible for generating returns on underlying deposits but also as a technology partner within the joint venture. The firm provided the infrastructure for stablecoin issuance across blockchains, as well as the main operational modules including customer onboarding, on- and off-ramping and risk management controls. The solution successfully reduced settlement times from days to minutes and eliminated many of the correspondent banking fees traditionally associated with cross-border payments. However, the testing also revealed challenges. Integration complexity increased significantly with the number of ecosystem participants involved. Interoperability gaps emerged with partner blockchains such as Hyperledger Fabric. Most institutional participants strongly preferred custodial wallet solutions over self-custody options, indicating the continued importance of trusted third parties in regulated environments. Regulatory takeaways The sandbox revealed a need for institutional- grade regulatory frameworks for stablecoins supporting trade, treasury and capital repatriation. Medad‘s approach to transparency (proof of reserves) was seen as a necessary foundation for regulatory acceptance, but additional clarity is needed around the cross-border treatment of stablecoins in trade settlement. ADGM emerged as a preferred jurisdiction for digital asset oversight, but broader adoption would require alignment across UAE regulations and with international frameworks. As part of its future roadmap, Medad Holdings proposed using comprehensive economic partnership agreements (CEPAs) to support mutual recognition of stablecoin regimes. Medad Holdings BOX 9 Company background: Based in the UAE, Medad is developing a trade-focused stablecoin solution for cross-border payments, particularly targeting regions facing currency volatility and limited access to US dollar liquidity. Its solution seeks to enhance payment efficiency and mitigate FX risks in global trade settlements. Main technology features: –Yield-bearing, programmable stablecoin (OvUSD) issued on Ethereum and Stellar –Integration with enterprise financial systems such as SAP –Support for on-chain FX conversion and smart escrow contracts –Transparent proof of reserves and institutional- grade compliance Testing focus: In the sandbox, Medad collaborated with the FSRA to demonstrate how stablecoins could modernize cross-border trade settlement, reduce transaction costs and enable programmable trade logic while maintaining regulatory compliance. Advancing Digital Trade: Insights from the UAE TradeTech Regulatory Sandbox 20