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- RLUSD has achieved regulatory approval as an Accepted Fiat-Referenced Token in Abu Dhabi.
- The stablecoin can legally be used in the capital of the United Arab Emirates.
Ripple has attained another regulatory approval for its USD-backed stablecoin. Abu Dhabi’s Financial Services Regulatory Authority (FSRA) recognized RLUSD as an “Accepted Fiat-Referenced Token”. This means the Ripple stablecoin can legally be used in the capital of the United Arab Emirates, the international Financial center of Abu Dhabi, and the ADGM.
In a blog post, Ripple announced that the license requires authorized individuals to use the asset for regulated activities. Not just that. Its use must be in line with the regulatory obligations set up for the use of Fiat-Referenced Tokens.
Ripple’s senior vice president of stablecoins, Jack McDonald, noted that the adoption rate of RLUSD is increasing rapidly among institutions. In case, this could prepare the ground for the next wave of compliance while securing global digital adoption.
Ripple’s Managing Director for Middle East and Africa, Reece Merrick, also highlighted that the latest regulatory approval confirms the RLUSD’s existence as a compliant stablecoin that not only meets the highest standards of trust, but also transparency and utility.
“This recognition is yet another step forward for Ripple’s operations in the region, where we are experiencing surging interest in our products. We look forward to continuing to work with our partners and regulators to support the safe and rapid adoption of digital asset technology across the Middle East.”
After congratulating the blockchain company, the Chief Market Development Officer at ADGM, Arvind Ramamurthy, also clarified that the regulatory framework of the region is perfectly designed to support innovation and growth. According to him, Abu Dhabi has sought to solidify its position as the “next generation of financial services and digital finance”.
Previous Regulatory Moves Involving RLUSD
Before this strategic move, the RLUSD earlier received approval from the Dubai Financial Services Authority (DFSA) to operate as a crypto token and be used within the Dubai International Financial Centre (DIFC). In that landmark development, Ripple was reported to now have the green light to integrate its stablecoin into the DFSA-licensed flagship payments solution.
Market data has also confirmed that stablecoin adoption has been on the rise in the UAE. In 2024, stablecoin transactions in the region increased by 55% year on year. As detailed in our earlier news brief, Ripple has also secured a UAE custody deal to tokenize property titles on the XRP Ledger.
Ripple has equally sought to capitalize on the global demand to extend the reach of RLUSD with its recent move occurring in Bahrain. It has also partnered with ABSA Bank to provide digital asset custody services to South African customers, as featured in our previous news story. In Kenya, Mercy Corps Ventures was earlier reported to be “pilot testing RLUSD in a climate risk insurance project.”
