Ripple’s dollar-backed stablecoin has received approval for institutional use in Abu Dhabi after being classified as an Accepted Fiat-Referenced Token by the region’s financial regulator. The company announced on Thursday that this recognition enables regulated entities within the Abu Dhabi Global Market (ADGM) to utilize Ripple USD (RLUSD) across permitted financial activities. ADGM operates as an international financial center and free zone located on Al Maryah and Al Reem Islands.

“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,” said Jack McDonald, senior vice president of stablecoins at Ripple.

The approval came from the Financial Services Regulatory Authority, allowing licensed businesses to use RLUSD provided they comply with rules governing fiat-referenced tokens, including requirements for reserves and disclosures.

Ripple expands its presence in the UAE

Ripple, issuer of the popular XRP cryptocurrency, has been broadening its footprint across the UAE for over a year. In late 2024, it began pursuing authorization from the Dubai Financial Services Authority as part of a strategic move to scale its digital-asset services, initially receiving in-principle approval before securing full authorization in March. This gave the company permission to offer cross-border crypto payment solutions within the Dubai International Financial Centre.

By June, the DFSA had also approved RLUSD for use within the DIFC, enabling supervised firms to integrate the stablecoin for activities such as payments and treasury operations. Ripple has since onboarded early adopters in the region, including Zand Bank and fintech platform Mamo, through its Ripple Payments infrastructure.

RLUSD, introduced at the end of 2024, is issued under a limited-purpose trust charter from the New York Department of Financial Services. It maintains a 1:1 peg to the US dollar and is fully backed by cash and equivalent assets.

UAE tightens oversight of DeFi and Web3

The approval also arrives shortly after significant regulatory changes in the UAE. Earlier this week, the country enacted a new central bank law that brings decentralized finance and much of the Web3 ecosystem into a formal licensing regime.

Federal Decree Law No. 6 of 2025, effective since September 2025, mandates that platforms, protocols, and infrastructure providers engaged in services such as payments, lending, custody, exchanges, or investment activities secure authorization from the Central Bank of the UAE by September 2026.

Sources:

https://ripple.com/ripple-press/rlusd-recognized-as-accepted-fiat-referenced-token-for-use-within-abu-dhabis-adgm/

https://ripple.com/ripple-press/zand-bank-and-mamo-newest-ripple-payments-customers-in-uae/

https://cointelegraph.com/news/abu-dhabi-approves-ripple-rlusd-stablecoin-institutional-use

https://x.com/reece_merrick/status/1993908123413958946