Ripple has achieved a significant regulatory milestone in the Gulf region, with Abu Dhabi’s Financial Services Regulatory Authority (FSRA) officially recognizing Ripple USD (RLUSD) as an “Accepted Fiat-Referenced Token.” This designation effectively greenlights the USD-backed stablecoin for regulated use within the Abu Dhabi Global Market (ADGM), marking another strategic win in Ripple’s expanding Middle Eastern operations.
Institutional Framework Access Unlocked
The FSRA approval grants RLUSD access to ADGM’s structured framework for fiat-referenced tokens, allowing FSRA-licensed “Authorised Persons” to utilize the stablecoin for regulated financial activities. Most notably, RLUSD can now serve as lending collateral within the jurisdiction, a crucial function for institutional financial operations.
Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, emphasized the strategic importance of this development. The approval represents “another milestone for Ripple here in the Middle East,” with RLUSD now positioned as an approved collateral asset within ADGM’s regulatory ecosystem. Merrick highlighted the “awesome momentum for Ripple in the Middle East” that has characterized early 2025, expressing confidence in building upon these regulatory foundations heading into 2026.
Market Position and Institutional Adoption
RLUSD has demonstrated remarkable growth since its late 2024 launch, achieving a market capitalization exceeding $1.2 billion. The stablecoin operates under a New York Department of Financial Services Limited Purpose Trust Company Charter, emphasizing regulatory compliance and institutional-grade standards rather than retail speculation.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, positioned the FSRA recognition as validation of RLUSD’s institutional focus. According to McDonald, the approval “reinforces our commitment to regulatory compliance and trust – two non-negotiables when it comes to institutional finance.” With growing adoption in core financial applications including collateral and payments, RLUSD is establishing itself as “a go-to USD stablecoin for major institutions.”
Regulatory Architecture and Regional Strategy
The RLUSD designation operates within ADGM’s dedicated framework for fiat-referenced tokens, which restricts regulated firms to using only assets with “Accepted” status for critical activities such as custody, dealing, and venue operations. This framework shift moves RLUSD from technical usability to explicit regulatory permission within one of the region’s most structured digital asset regimes.
ADGM’s Chief Market Development Officer, Arvind Ramamurthy, framed the approval as evidence of Abu Dhabi’s regulatory sophistication. The jurisdiction’s “robust regulatory framework, designed to support the sustainable growth of innovative firms and ensure the highest international standards of governance and compliance,” positions Abu Dhabi as a leading hub for next-generation financial services and digital finance innovation.
Expanding Middle East Footprint
The Abu Dhabi approval builds on Ripple’s growing regional presence. In the UAE, RLUSD has already secured clearance in Dubai’s DIFC through the DFSA’s recognized token regime. The broader Middle Eastern expansion includes a strategic partnership in Bahrain and the onboarding of Absa Bank as Ripple’s first custody client in Africa.
RLUSD integration spans Ripple’s complete technology stack, including Ripple Payments, Ripple Custody, and Ripple Prime. The stablecoin functions as both a settlement and collateral asset across cross-border payments, institutional trading, and capital markets operations, supporting Ripple’s comprehensive financial infrastructure approach.
Technical Foundation and Market Performance
Ripple emphasizes RLUSD’s institutional-grade foundation, featuring 1:1 USD backing through high-quality liquid assets, strict reserve segregation, third-party attestations, and clear redemption rights. This structure targets regulatory and institutional expectations, differentiating RLUSD in the competitive stablecoin market.
Meanwhile, XRP, Ripple’s native digital asset, maintains its market position at $2.20, reflecting continued investor confidence in the company’s regulatory progress and expanding institutional adoption. The combination of RLUSD’s regulatory approvals and XRP’s market stability reinforces Ripple’s dual-asset strategy for institutional financial services.