Ripple, a financial technology company that offers crypto solutions for businesses, announced that its USD-backed stablecoin Ripple USD (RLUSD) has been recognized 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, the Capital of the United Arab Emirates (UAE).
RLUSD is now eligible for use by Authorised Persons licensed by the FSRA to carry out applicable Regulated Activities, “provided that they satisfy and maintain compliance with firm-level regulatory obligations relevant to the use of Fiat-Referenced Tokens.”
Noting ADGM’s standing as a leading international financial centre known for its progressive regulatory standards, this represents “a further significant step in establishing Ripple’s stablecoin as a trusted, compliant settlement asset in the Middle East.”
In addition to the FSRA’s recognition, RLUSD also recently “received approval from other regulators within the region.”
Issued under a New York Department of Financial Services (NYDFS) Limited Purpose Trust Company Charter, RLUSD has reached “a market capitalization of over $1.2 billion since its launch in late 2024.”
With safeguards including 1:1 USD backing by “high-quality” liquid assets, strict reserve management and asset segregation, third-party attestation and redemption rights, RLUSD is designed to “meet the highest expectations of both regulators and institutional users.”
This regulatory clarity is vital for enabling the use of RLUSD in key enterprise use cases, including integration “into Ripple’s cross-border payment solution, enabling on- and off-ramps into the crypto ecosystem, and supporting capital markets via Ripple Prime.”
RLUSD’s acknowledgement in Abu Dhabi builds on Ripple’s momentum across the Middle East.
Ripple recently announced a partnership in Bahrain which “sees the company taking its first step into the Kingdom.”
These announcements follow earlier updates such “as the news of Zand Bank and Mamo as the customers to adopt Ripple’s blockchain-enabled payments offering in the UAE.”
As noted in the update, Ripple is a financial technology company “that offers crypto solutions for businesses.”
Ripple Payments uses blockchain to make cross-border payments widely accessible. Ripple Custody offers customers a “way to store and manage digital assets.”
Via Ripple Prime, the company reportedly offers a prime brokerage for institutional customers. Ripple’s stablecoin (RLUSD) and the cryptocurrency, XRP, are leveraged across these solutions to “make traditional finance more efficient and enable new ways to utilize digital assets.”
