Ripple announced today that its USD-backed stablecoin Ripple USD (RLUSD) has been recognized as an Accepted Fiat-Referenced Token by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).12
The approval allows FSRA-licensed entities to use RLUSD within ADGM if they comply with all applicable regulatory requirements. This marks the first time a global USD stablecoin with over $1 billion in market capitalization has received this specific recognition in the Middle East under ADGM’s fiat-referenced token framework.
Key Details of the Recognition
RLUSD, issued under a New York Department of Financial Services Limited Purpose Trust Company charter, maintains 1:1 backing with USD deposits, short-term U.S. government treasuries, and other cash equivalents. Monthly third-party attestations confirm the reserves.
Since its launch in late 2024, RLUSD has surpassed $1.2 billion in market capitalization. Institutions increasingly adopt it for payments, collateral, and treasury management.
Jack McDonald, Ripple Senior Vice President of Stablecoins, said the FSRA recognition reinforces the company’s focus on compliance. He noted RLUSD is rapidly becoming the preferred USD stablecoin for leading institutions.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, congratulated Ripple and highlighted the regulator’s framework that supports sustainable growth for innovative firms while upholding international standards.
Why This Matters for the Middle East
The decision positions Abu Dhabi as the first major financial center in the region to explicitly clear a billion-dollar-plus stablecoin for institutional use under its 2025 fiat-referenced token rules, finalized on October 31, 2025.3
Ripple already operates in the UAE under a DFSA license in Dubai and recently expanded into Bahrain. The ADGM recognition adds regulated on- and off-ramps for RLUSD in cross-border payments, custody, and capital markets applications via Ripple Payments and Ripple Prime.
Reece Merrick, Ripple Managing Director for Middle East and Africa, called the UAE a global benchmark for digital asset regulation. He said demand for Ripple products in the region is surging.
The approval requires no separate license for RLUSD itself. Licensed ADGM firms can deploy it immediately if they meet firm-level obligations for fiat-referenced tokens.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
