Ripple’s dollar-backed stablecoin, RLUSD, recently received a significant regulatory approval allowing its use by licensed institutions in Abu Dhabi’s financial zone. This achievement marks a crucial step for Ripple, as the stablecoin gains recognition as an Accepted Fiat-Referenced Token by local authorities.

In an announcement made earlier this week, Ripple confirmed that the approval permits authorized firms to utilize RLUSD within the Abu Dhabi Global Market (ADGM), a key international financial center located on Al Maryah and Al Reem Islands.

“With a market capitalization exceeding $1 billion and growing adoption for financial purposes, RLUSD is swiftly becoming a preferred USD stablecoin among significant institutional players,” stated Jack McDonald, Senior Vice President of Stablecoins at Ripple.

This approval was issued by the Financial Services Regulatory Authority, which supervises activities within the ADGM. Under this regulation, licensed companies are permitted to use RLUSD for specific activities as long as they comply with fiat-referenced token requirements, such as reserve management and disclosure obligations.

Ripple’s RLUSD approved for use in ADGM.
Source: Reece Merrick

Ripple’s Expansion in the UAE

In October 2024, Ripple announced its pursuit of a license from the Dubai Financial Services Authority (DFSA), which was later approved that same month. By March, Ripple had received full regulatory approval to provide cross-border crypto payment services in the Dubai International Financial Centre (DIFC).

In June, the DFSA also cleared RLUSD for utilization by firms operating in the DIFC, facilitating its use for payments and treasury management. Ripple has engaged organizations such as Zand Bank and fintech application Mamo as early adopters of its blockchain payment solutions.

Launched in late 2024, RLUSD is regulated under a limited-purpose trust charter issued by the New York Department of Financial Services and is pegged 1:1 with the US dollar, fully backed by cash and equivalents.

Recent Regulatory Developments in the UAE

Recently, the UAE enacted a comprehensive new central bank law that brings Decentralized Finance (DeFi) and various aspects of the Web3 ecosystem under formal regulatory supervision. This law mandates that relevant protocols, platforms, and infrastructure providers involved in financial transactions obtain appropriate licenses from the Central Bank of the UAE by September 2026.

For more details, visit: Ripple vs. XRP vs. XRP Ledger: Key Differences, Explained.

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