Ripple Secures Key UAE Nod as Abu Dhabi ADGM Recognizes RLUSD Stablecoin

Under the terms of the approval, RLUSD becomes eligible for use by “Authorised Persons” licensed by the FSRA, such as banks, fintechs, payment providers and custody or brokerage firms, provided they meet and maintain compliance with the firm-level obligations outlined in ADGM’s regulatory framework for fiat-referenced tokens.

Backed by a charter from the NYDFS, RLUSD has already reached a market capitalization of more than $1.2 billion since its late-2024 launch, says Ripple. The on-chain design of the token includes strict controls: 1:1 USD backing with high-quality liquid assets; segregation of reserves; third-party attestations; and explicit redemption rights-all devised to ensure that the stablecoin is in step with institutional and regulatory standards.

Jack McDonald, Senior Vice President of Stablecoins at Ripple, highlighted the significance of the approval, noting, “The FSRA’s recognition of RLUSD as a Fiat-Referenced Token reinforces our commitment to regulatory compliance and trust - two non-negotiables when it comes to institutional finance.” He added that RLUSD’s growth is already accelerating institutional engagement, stating, “With a market capitalization 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.”

Looking at it from a broader perspective, ADGM has been positioned as one of the region's leading crypto-friendly jurisdictions. Its regulatory regime with respect to virtual assets, which also includes fiat-referenced tokens, has been evolving over recent years to marry innovation with robust compliance.

The approval is also a strategic win for Ripple's regional ambitions. The company said RLUSD's recognition in Abu Dhabi comes after prior momentum in the Middle East and Africa, with a fresh partnership in Bahrain and its first African custody customer via Absa Bank.

The practical consequence is that institutions within ADGM can now embed RLUSD into regulated services-from cross-border payments and settlements to liquidity provision, collateralization, and prime brokerage operations-under a familiar legal framework. This removes a significant regulatory barrier that has often impeded the adoption of stablecoins in traditional finance jurisdictions.

If it is approved, the RLUSD would increase options for dollar-pegged settlement assets beyond legacy correspondent-bank rails and add a programmable, on-chain alternative for banks and payment firms doing business in the MENA region. For Ripple, the green light underlines a strategic pivot: from a purely crypto-focused payments player to full-stack infrastructure provider offering stablecoins, custody, prime brokerage and settlement rails designed to work within regulated finance ecosystems.

But the real importance of the FSRA nod depends on real-world uptake. While RLUSD boasts over $1.2 billion in supply, that in itself is no indicator of wide institutional usage. If this approval is to convert into volume, Ripple will have to achieve meaningful adoption among banks, payment providers, custodians, and other financial institutions within ADGM and beyond.

Also, the approval is a signal of regulatory confidence, at least from within ADGM; this does not necessarily automatically imply global interoperability. Firms outside ADGM may still suffer restrictions based on local legislation, compliance regimes, or simply because of regulatory uncertainty.

By clearing one of the Gulf's most prominent financial centres, RLUSD may be better positioned to compete with large incumbent stablecoins such as USDC and USDT in institutional settlement, especially for dollar-denominated flows across the MENA region. For a company with ambitions spanning payments, custody and prime brokerage, that could prove to be a turning point.