- Abu Dhabi’s FSRA has officially recognized RLUSD as an Accepted Fiat-Referenced Token.
- The approval allows ADGM-licensed institutions to use the stablecoin for payments and collateral.
- RLUSD has surpassed a $1.2B market cap, leveraging its dual NYDFS and FSRA regulatory status.
Ripple has secured a critical regulatory foothold in the Middle East, announcing today that the Abu Dhabi Financial Services Regulatory Authority (FSRA) has recognized its USD-backed stablecoin, RLUSD, as an “Accepted Fiat-Referenced Token.”
“We congratulate Ripple on achieving this important milestone,” said Arvind Ramamurthy, Chief Market Development Officer, ADGM.
“We look forward to seeing them make use of our robust regulatory framework, designed to support the sustainable growth of innovative firms and ensure the highest international standards of governance and compliance, which continues to set global benchmarks in the digital asset space.”
Related: First Mastercard Credit Card Settlement Pilot Using Ripple’s RLUSD Launches on XRP Ledger
The ‘Authorised Person’ Unlock
The designation effectively integrates RLUSD into the regulatory fabric of the Abu Dhabi Global Market (ADGM), the UAE’s international financial center. Under the FSRA’s framework, the stablecoin is now eligible for use by “Authorised Persons,” licensed financial firms operating within the jurisdiction.
This approval permits these institutions to utilize RLUSD for regulated activities, provided they maintain firm-level compliance. Jack McDonald, Senior Vice President of Stablecoins at Ripple, identified the strategic utility of this designation, noting that institutional adoption is shifting toward “core financial uses like collateral and payments.”
The NYDFS-FSRA Corridor
The FSRA recognition creates a unique regulatory bridge. RLUSD is already issued under a New York Department of Financial Services (NYDFS) Limited Purpose Trust Company Charter. By securing parallel recognition in Abu Dhabi, Ripple has established a compliant corridor for US Dollar settlement between two major global financial hubs.
Reece Merrick, Ripple’s Managing Director for the Middle East, stated that the move aligns with the UAE’s push to set “global benchmarks” for digital asset governance. The approval builds on Ripple’s existing regional footprint, which includes partnerships with Zand Bank and Mamo for blockchain-enabled payments
For instance, Ripple announced a strategic partnership with Bahrain Fintech Bay (BFB) to enhance the adoption of RLUSD. Previously, Ripple announced that Zand Bank and Mamo were the first customers to adopt its blockchain-enabled payments offering in the UAE.
Market Picture
The rising mainstream adoption of RLUSD has helped the highly regulatory-compliant stablecoin surpass $1 billion. Furthermore, the RLUSD stablecoin is backed by U.S. dollars with a ratio of 1:1, thus attracting significant institutional support.
The rising trading volume of RLUSD across different global markets, led by the Middle East, has a positive impact on XRP. Moreover, RLUSD mainly uses the XRPL network and XRP for gas payments.
Notably, the ADGM has emerged as the region’s largest international financial center by market capitalization. According to a recent report, ADGM recorded a 42% jump in Assets Under Management (AUM) during the first half of this year.
Furthermore, ADGM has more than 2,972 operating entities, both financial and non-financial firms. As such, Ripple’s RLUSD is well-positioned to gain market traction within the ADGM and the wider Middle East.
Related: Ripple Wants Payments And Stablecoins To Lead XRP, Not an IPO Listing
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Source: https://coinedition.com/ripples-rlusd-secures-accepted-token-status-from-abu-dhabi-regulator/
