TLDR
- Ripple’s RLUSD is now approved as a Fiat-Referenced Token by Abu Dhabi’s FSRA.
- Licensed FSRA institutions can now use RLUSD in regulated financial activities.
- RLUSD has crossed a $1.2 billion market cap since launching in late 2024.
- RLUSD approval follows Ripple’s earlier regulatory progress in the UAE region.
Ripple’s USD-backed stablecoin, RLUSD, has received official approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) for use within the Abu Dhabi Global Market (ADGM). This approval marks a new milestone in Ripple’s expansion across the Middle East, enabling licensed institutions to use RLUSD in regulated financial activities. The move reinforces Abu Dhabi’s role as a forward-focused hub for digital finance and regulatory innovation in the region.
Ripple Receives FSRA Approval for RLUSD in Abu Dhabi
Ripple has confirmed that its stablecoin, Ripple USD (RLUSD), has been approved by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). With this designation, RLUSD becomes an Accepted Fiat-Referenced Token, making it legally usable by institutions licensed by the FSRA.
The approval allows authorized entities to use RLUSD for specific regulated activities, as long as they meet the compliance requirements set by the FSRA. Abu Dhabi’s ADGM is one of the major international financial centers, known for enforcing high regulatory standards for digital asset services.
Ripple Reinforces Regional Expansion Through Regulatory Compliance
The approval in Abu Dhabi adds to Ripple’s recent expansion efforts in the Middle East. RLUSD, which launched in late 2024, has already reached a market capitalization exceeding $1.2 billion. It is fully backed 1:1 with USD and maintained under strict reserve controls.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, commented: “The FSRA’s recognition of RLUSD as a Fiat-Referenced Token reinforces our commitment to regulatory compliance and trust.” He added that RLUSD is becoming a preferred USD stablecoin for major financial institutions around the world.
Ripple’s stablecoin is issued under a Limited Purpose Trust Company Charter from the New York Department of Financial Services (NYDFS). It features daily attestation, asset segregation, and clear redemption processes to ensure transparency and security for institutional use.
Middle East Gains Traction as Key Region for Ripple’s Stablecoin
Ripple continues to strengthen its presence in the Middle East and Africa. Alongside the FSRA’s green light, Ripple has formed strategic partnerships in Bahrain and the UAE, which aim to boost the adoption of digital assets. Zand Bank and Mamo were among the first institutions in the UAE to adopt Ripple’s blockchain-enabled payment solutions.
Reece Merrick, Managing Director of Ripple in the Middle East and Africa, noted: “ADGM is recognized globally for its robust and forward-thinking regulatory leadership. This approval reinforces RLUSD as a compliant stablecoin that meets the highest standards of trust and utility.”
The approval in Abu Dhabi follows Ripple’s earlier success in securing a license from the Dubai Financial Services Authority (DFSA) earlier in the year. This license allowed Ripple to offer regulated digital asset services across the UAE.
Use Cases and Institutional Adoption on the Rise
The FSRA’s decision opens up more enterprise use cases for RLUSD, including cross-border payments, capital market activities, and digital asset transactions. RLUSD will also support on- and off-ramp capabilities in Ripple’s payment infrastructure.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, said, “We congratulate Ripple on achieving this important milestone. Our framework is built to support innovative firms while upholding global standards of governance and compliance.”
Ripple has also taken its stablecoin to other regions. The company partnered with Fintech Bay in Bahrain and began testing RLUSD in real-world payment use cases. In Africa, partnerships with fintech companies such as Chipper Cash, VALR, and Yellow Card further show the coin’s growing global reach.
In Dubai, Ripple’s collaboration with Ctrl Alt and the Dubai Land Department enables the creation of digital property titles on the XRP Ledger, pushing forward blockchain adoption in real estate.
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