Abu Dhabi Greenlights Ripple’s RLUSD Stablecoin for Institutional Adoption
The Financial Services Regulatory Authority (FSRA) in Abu Dhabi has officially Ripple USD (RLUSD) as an Accepted Fiat-Referenced Token for use in the Abu Dhabi Global Market (ADGM).
The certification allows FSRA-licensed businesses in the international financial center to use the dollar-pegged stablecoin across a variety of regulated financial operations.
Banks, fintechs, and payments providers approved in ADGM can use for payments, collateral management, lending, and treasury operations, as long as they comply with the rules that apply to their businesses.
The move puts RLUSD in the identical group as a small number of tokens permitted under ADGM’s ring-fenced digital asset regime.
Structure of Stablecoins and Protections For Reserves
RLUSD is a stablecoin backed by and operates under a limited-purpose trust business charter issued by the New York Department of Financial Services. Its reserves are kept in cash and other high-quality, liquid assets.
The system has 1:1 backing, asset segregation, strict reserve management rules, and third-party attestations. It also gives institutional users unamlargeuous rights to redeem their assets.
Since its launch in late 2024, RLUSD’s circulating supply has increased to a of around $1–$1.2 billion, indicating that more institutions are using it for payments and as collateral. Ripple has noted that the stablecoin is becoming increasingly popular for key financial tasks such as settlements, posting collateral, and providing prime brokerage services.
Making Ripple’s Presence in The Region Stronger
has won many regulatory battles in the United Arab Emirates and the rest of the Middle East, and the ADGM clearance is another success. Earlier this year, RLUSD also got the go-ahead to be used in the Dubai International Financial Centre. This means that regulated businesses there can use stablecoins in their payment and treasury operations.
and other regional banks, as well as fintech companies like Mamo, have already adopted Ripple’s payment infrastructure.
They use its rails to accelerate the settlement of cross-border transactions. FSRA’s recognition of RLUSD further strengthens the stablecoin’s position in a jurisdiction known for strict token classifications and digital asset laws friendly to banks.
What This Means For The Use of Institutional Stablecoins
By granting RLUSD fiat-referenced status, strengthens its plan to recognize regulated stablecoins as significant parts of the market rather than just a bet.
The decision provides institutional users in ADGM with a compliant, dollar-linked settlement asset that aligns with the rules and risk management systems already in place.
According to FSRA’s guidelines for fiat-referenced tokens, people in the Middle East and Africa are anticipated to use RLUSD for cross-border payments, collateralization, liquidity management, and on- and off-ramps into digital asset markets.
People view this clearance as a large step toward making stablecoins a part of the region’s mainstream institutional finance.
