Ripple’s stablecoin that is backed by US dollars, known as RLUSD, received regulatory approval from the FSRA of Abu Dhabi, marking a major milestone for the company's expansion into the Middle East. This means RLUSD has been classified as an Accepted Fiat-Referenced Token, allowing it to be used by licensed financial institutions in Abu Dhabi Global Market (ADGM).
RLUSD now joins the limited number of digital assets approved for use within ADGM’s well-regulated financial ecosystem. This further strengthens the UAE's reputation as a leading hub for institutional digital asset adoption.
FSRA’s approval permits authorized entities in the ADGM jurisdiction, including cross-border payments, treasury management, collateral settlement, and other regulated financial services. Companies will still have to observe regulations on reserve management, disclosure, and governance requirements that apply to fiat-referenced tokens.
As per the announcement from Ripple, RLUSD has surpassed the $1 billion mark in terms of market capitalization. This is a result of growing interest among institutions in regulated dollar-stablecoins.
The latest regulatory milestone builds on Ripple's growing footprint across the UAE. Earlier, the Dubai Financial Services Authority approved RLUSD for use within the Dubai International Financial Center (DIFC), allowing regulated firms to deploy the stablecoin for payment and treasury applications.
The Ripple network has also grown its regional collaborations through institutions like Zand Bank and Mamo, a fintech platform that uses blockchain payment infrastructure in the UAE financial sector. This forms part of the overall strategy of Ripple in promoting regulated digital assets within the financial industry.
The Abu Dhabi license further helps in confirming the vision of the UAE in becoming the center of digital finance through well-thought-out and innovative regulations. For Ripple, it further confirms that its digital asset RLUSD has been recognized among stablecoins competing within the institutional market.
Through regulatory licenses from both Abu Dhabi and Dubai, Ripple is building up RLUSD as an asset for making payments within the Middle East region.
Also read: Goldman Lampe Acquires $137 Million in Bitcoin as Institutional Adoption Grows