In a significant development for the cryptocurrency landscape, Ripple's dollar-pegged stablecoin, RLUSD, has been approved for use by institutions in Abu Dhabi. This recognition as an Accepted Fiat-Referenced Token by the Financial Services Regulatory Authority (FSRA) marks a major milestone for the company.

Key Takeaways

Ripple's RLUSD stablecoin received approval for institutional use by the FSRA in Abu Dhabi.
This approval allows regulated firms to transact with RLUSD within the Abu Dhabi Global Market (ADGM).
Ripple has been expanding its presence in the UAE, securing licenses for various services.
The UAE has implemented new regulations bringing decentralized finance (DeFi) and Web3 under central bank authority.

Abu Dhabi regulator approves Ripple’s RLUSD stablecoin for institutional use

Approval of RLUSD in Abu Dhabi

Ripple announced on Thursday that its stablecoin, RLUSD, is now officially cleared for use by regulated financial institutions in the Abu Dhabi Global Market (ADGM). This international financial center is located on the islands of Al Maryah and Al Reem in Abu Dhabi.

Jack McDonald, senior vice president of stablecoins at Ripple, stated, “With a market capitalization of over $1 billion and growing adoption for key financial activities like collateral and payments, RLUSD is rapidly becoming a preferred USD stablecoin for major institutions.”

The FSRA granted this approval, which allows licensed companies to utilize RLUSD for designated activities, adhering to compliance standards related to fiat-referenced tokens. These include requirements for reserve management and transparency.

Ripple’s RLUSD approved for use in ADGM. Source: Reece Merrick

Ripple's Expansion in the UAE

Ripple has been actively pursuing growth in the United Arab Emirates. In October 2024, the company sought a license from the Dubai Financial Services Authority (DFSA) to broaden its digital asset offerings, obtaining preliminary approval shortly after.

By March, Ripple confirmed that it had received full regulatory approval, enabling it to provide cross-border cryptocurrency payment services within the Dubai International Financial Centre (DIFC), a key economic free zone.

In June, the DFSA also approved RLUSD for use by companies operating within the DIFC, allowing its application for regulated transactions such as payments and treasury management. Companies like Zand Bank and fintech app Mamo have already joined as initial users of Ripple Payments, Ripple’s blockchain-based payment solution.

Launched in late 2024, RLUSD is issued under a limited-purpose trust charter from the New York Department of Financial Services. It is pegged at a 1:1 ratio to the US dollar and is fully backed by cash and equivalent holdings.

New Regulations in the UAE for DeFi and Web3

Recently, the UAE enacted a comprehensive central bank law that subjects decentralized finance (DeFi) and much of the Web3 sector to formal regulatory scrutiny.

The Federal Decree Law No. 6 of 2025, which has been effective since September 2025, mandates that all protocols, platforms, and infrastructure providers engaged in payment processing, lending, custody, exchanges, or investment services must obtain licenses from the Central Bank of the UAE by September 2026.