New Zealand financial regulators have ruled that the stablecoin NZDD is not a financial product

According to Cointelegraph, the New Zealand Financial Markets Authority (FMA) has officially ruled that the stablecoin NZDD, which is pegged to the New Zealand dollar, does not qualify as a financial product.

The FMA stated that the NZDD stablecoin does not constitute a debt security in economic substance, as its holders do not receive any profits, interest, or other returns, nor does it possess investment characteristics. This ruling stems from the financial technology sandbox pilot project that the FMA is advancing.