Ripple's dollar-pegged stablecoin has been approved for institutional use in Abu Dhabi after receiving recognition from local regulators as an "approved fiat reference token."
Ripple announced on Thursday that this approval allows regulated companies to deploy Ripple USD (RLUSD) within the Abu Dhabi Global Market (ADGM), an international financial center and free zone located on Al Maryah and Al Reem Islands in Abu Dhabi.
Jack McDonald, Senior Vice President of Ripple Stablecoin, stated, "With a market capitalization exceeding $1 billion, the adoption of RLUSD for core financial uses such as collateral and payments is rapidly growing, making it a preferred dollar stablecoin for major institutions."
This approval comes from the Financial Services Regulatory Authority, which oversees activities within the ADGM. According to the decision, companies licensed by the regulatory authority can use RLUSD for approved activities, provided they meet compliance requirements related to fiat reference tokens, including reserve management and disclosure obligations.
In October 2024, Ripple revealed that it is seeking a license from the Dubai Financial Services Authority (DFSA) as part of its expansion of digital asset services in the UAE, and received in-principle approval later that month.
In March, the company confirmed it had obtained comprehensive regulatory approval to provide cross-border cryptocurrency payment services within the Dubai International Financial Centre (DIFC), a major free economic zone with its own regulatory framework.
In June, the DFSA approved the use of RLUSD by companies operating within the DIFC, allowing the stablecoin to be used for regulated activities such as payments and treasury management.
In the UAE, Ripple has also signed on Zand Bank and the fintech application Mamo as early users of its blockchain-based payment platform, Ripple Payments.
RLUSD was launched at the end of 2024, issued under a limited-purpose trust charter by the New York Department of Financial Services. It is pegged to the dollar at a 1:1 ratio and is fully backed by cash and cash equivalents.
Earlier this week, the UAE passed a comprehensive new central bank law that brings decentralized finance (DeFi) and much of the Web3 industry under formal regulation.
Federal Law No. 6 of 2025, effective from September 2025, requires providers of agreements, platforms, and infrastructure involved in payments, lending, custody, exchanges, or investment services to obtain a license from the UAE Central Bank by September 2026.
Related: The Bank for International Settlements (BIS) appoints the IMF's digital currency head and digital euro advocate to lead its innovation hub.
Original article: “Abu Dhabi Regulator Approves Ripple's RLUSD Stablecoin for Institutional Use”
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