Key Insights:
- Ripple’s RLUSD gets ADGM approval, enabling use in one of the world’s top financial centers.
- The stablecoin is backed 1:1 with USD and now eligible for regulated institutional activity in the UAE.
- Ripple expands in the Middle East with RLUSD integration into payments, custody, and prime services.
Ripple’s USD-backed stablecoin, Ripple USD (RLUSD), has received formal approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The stablecoin is now officially recognized as an Accepted Fiat-Referenced Token, making it eligible for use in regulated activities within the financial center.
Firms licensed by the FSRA can now use RLUSD for regulated operations, provided they meet compliance requirements. This move enables Ripple to expand stablecoin use in the UAE and build a presence in the Middle East. Abu Dhabi continues to attract international fintech activity, and this recognition adds to the region’s role in regulated digital asset adoption.
Ripple Expands Stablecoin Reach in the Region
Ripple confirmed that RLUSD will be supported within its existing product suite. Issued under a New York Department of Financial Services (NYDFS) charter, RLUSD is backed 1:1 with high-quality liquid assets. Since launching in late 2024, the stablecoin has grown to over $1.2 billion in market capitalization.
Ripple stated that the approval positions RLUSD for broader institutional use in the region. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, noted, “ADGM is recognized globally for its regulatory leadership… This approval reinforces RLUSD as a compliant stablecoin that meets high standards of trust, transparency, and utility.”
Supporting XRP’s Ecosystem and Institutional Use
Ripple said the stablecoin is already being used in Ripple Payments, Ripple Prime, and its custody services. The company expects adoption to grow in cross-border payments, collateral management, and capital markets.
Jack McDonald, Ripple’s SVP of Stablecoins, added, “The FSRA’s recognition of RLUSD reinforces our focus on compliance and trust—two non-negotiables in institutional finance.” RLUSD’s integration into Ripple’s products may also strengthen XRP’s position as demand builds for regulated digital solutions.
RLUSD’s structure includes regular third-party attestation, asset segregation, and clear redemption rights. These features aim to meet regulatory and institutional standards.
Ripple Deepens Middle East Footprint
Ripple has recently expanded across the Middle East and Africa. The company entered Bahrain with a new partnership and onboarded Absa Bank as its first custody client in Africa. In the UAE, Ripple continues to work with Zand Bank and Mamo for blockchain-based payment solutions.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, said,
“We congratulate Ripple on reaching this milestone. Abu Dhabi continues to set global benchmarks in financial services and digital assets.”
The ADGM approval provides a stronger base for RLUSD across regulated markets and may open the door for new institutional partnerships in the region.
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Source: https://coincu.com/press-release/ripples-rlusd-approved-in-abu-dhabi/