Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Ripple’s US-dollar backed stablecoin has been approved for use within ADGM, marking a significant regulatory milestone for the company’s expansion in the Middle East.
Ripple said in a statement that its stablecoin, Ripple USD (RLUSD), “has been recognised as an Accepted Fiat-Referenced Token by Abu Dhabi’s Financial Services Regulatory Authority (FSRA), enabling use within the ADGM, the international financial centre of Abu Dhabi.”
With this recognition, RLUSD is now eligible for use by Authorised Persons licensed by the FSRA to carry out applicable regulated activities, subject to compliance with firm-level obligations governing the use of fiat-referenced tokens.
Ripple said this marked a further step in establishing RLUSD “as a trusted, compliant settlement asset in the Middle East,” noting that the stablecoin has also received approvals from other regional regulators.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, said the FSRA’s decision “reinforces our commitment to regulatory compliance and trust — two non-negotiables when it comes to institutional finance”.
He added: “With a market capitalisation of over $1 billion and growing adoption in core financial uses like collateral and payments, RLUSD is quickly becoming a go-to USD stablecoin for major institutions. This momentum is helping drive the next wave of secure, compliant digital asset adoption around the world.”
Issued under a New York Department of Financial Services limited-purpose trust charter, RLUSD has reached a market capitalisation of more than $1.2 billion since launching in late 2024.
The stablecoin maintains 1:1 US dollar backing by high-quality liquid assets, with strict reserve management, asset segregation, third-party attestations and clear redemption rights. “RLUSD is designed to meet the highest expectations of both regulators and institutional users,” the statement said.
Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, said: “The UAE continues to set a global benchmark for digital asset regulation and innovation. ADGM is recognised globally for its robust and forward-thinking regulatory leadership, so this approval reinforces RLUSD as a compliant stablecoin that meets the highest standards of trust, transparency, and utility.”
He added that Ripple is seeing “surging interest” in its products across the region.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, said: “We congratulate Ripple on achieving this important milestone. We look forward to seeing them make use of our robust regulatory framework, designed to support the sustainable growth of innovative firms and ensure the highest international standards of governance and compliance.”
Ripple said the regulatory clarity would accelerate RLUSD’s use in enterprise applications, including integration into Ripple’s cross-border payment solution, enabling seamless on- and off-ramps into the crypto ecosystem, and supporting capital markets through Ripple Prime. The approval follows the company’s recent expansion moves in Bahrain and Africa.
Zand Bank and Mamo were the first customers in the UAE to adopt Ripple’s blockchain-enabled payments offering in the UAE.
Analysts said ADGM’s approval places RLUSD within a highly regulated environment known for institutional-grade standards.
CoinDesk, a crypto-economy analysis website, commented: “While stablecoins tied to US regulation typically dominate global volumes, ADGM’s approval gives Ripple access to a jurisdiction that has built a reputation for strict token classifications and bank-friendly digital-asset frameworks.”
An analysis by Blockchain Council said the approval “marks an important step in the evolution of compliant digital assets and signals growing confidence in blockchain-based settlement among global financial hubs.”
The Council added: “The Middle East is a major remittance corridor. A transparent, regulated stablecoin offers a faster and more cost-efficient alternative to traditional remittance networks,” and noted that RLUSD’s approval “represents a shift in the stablecoin market… stablecoins are gradually becoming part of formal payment infrastructure.”
CoinLaw, another industry analysis platform, said: “The move marks a significant win for Ripple in the Middle East, positioning RLUSD as a trusted, institutional-grade asset within one of the most respected financial jurisdictions globally.”
