Ripple's USD-backed stablecoin has received regulatory recognition from Abu Dhabi's Financial Services Regulatory Authority, marking a significant expansion for the digital asset in the Middle East financial hub.

The FSRA has designated Ripple USD (RLUSD) as an Accepted Fiat-Referenced Token, enabling its use within the Abu Dhabi Global Market, the emirate's international financial center. The approval allows licensed firms operating under FSRA oversight to utilize the stablecoin for regulated activities, subject to ongoing compliance requirements.

RLUSD’s Institutional Adoption

Since launching in late 2024 under a New York Department of Financial Services Limited Purpose Trust Company Charter, RLUSD has grown to a market capitalization exceeding $1 billion. The stablecoin is designed with institutional safeguards including full USD backing through high-quality liquid assets, segregated reserves, third-party attestation, and defined redemption mechanisms.

"The FSRA's recognition of RLUSD as a Fiat-Referenced Token reinforces our commitment to regulatory compliance and trust," said Jack McDonald, Senior Vice President of Stablecoins at Ripple. McDonald noted that the stablecoin has seen growing adoption for collateral and payment applications among major institutions.

Ripple’s Middle Eastern Expansion

The Abu Dhabi approval represents the latest in a series of regulatory milestones for Ripple in the Middle East and Africa. The company recently announced partnerships in Bahrain and secured its first custody client in Africa with Absa Bank. Earlier this year, Zand Bank and Mamo became the first UAE customers to adopt Ripple's blockchain-enabled payment services.

Arvind Ramamurthy, Chief Market Development Officer at ADGM, emphasized the jurisdiction's commitment to supporting innovative financial firms while maintaining international governance standards. The ADGM framework is designed to balance sustainable growth with robust compliance requirements in the digital asset sector.

Enterprise Use Cases: RLUSD

The regulatory clarity provided by FSRA recognition is expected to facilitate RLUSD integration across multiple enterprise applications. These include Ripple's cross-border payment infrastructure, cryptocurrency on-ramps and off-ramps, and capital markets operations through Ripple Prime, the company's institutional prime brokerage platform.

Reece Merrick, Managing Director for Middle East and Africa at Ripple, characterized the UAE as setting global benchmarks for digital asset regulation. He noted increasing regional demand for Ripple's product suite and emphasized the company's commitment to working with local partners and regulators.

The stablecoin approval underscores Abu Dhabi's positioning as a competitive hub for institutional digital finance, building on the emirate's broader strategy to attract blockchain and cryptocurrency businesses through clear regulatory frameworks.

What is Ripple’s RLUSD Stablecoin?

Ripple USD is a fiat-backed stablecoin maintaining 1:1 parity with the US dollar through reserves of high-quality liquid assets. The token operates under NYDFS regulatory oversight and is designed for institutional use cases including payments, settlement, and collateral applications.

Sources:

• Ripple’s Official Press Release: Ripple’s RLUSD recognized as Accepted Fiat-Referenced Token for use within Abu Dhabi’s ADGM
• Ripple’s Official Press Release: Ripple Builds on Dubai Regulatory License to Announce Zand Bank and Mamo As First Blockchain-Enabled Payments Clients in the UAE
• CoinMarketCap: RLUSD
• FinTech Magazine: Ripple Launches New USD Stablecoin Globally
• CoinDesk: Ripple Expands Into Bahrain in Boost for RLUSD
• The FinTech Times: Ripple Partners with Absa Bank to Bring Institutional Digital Asset Custody to South Africa‍
• AB Magazine: UAE cultivates crypto hub credentials

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