XRP News Update: RLUSD Rises in Prominence as UAE's ADGM Strengthens Its Position as a Leading Crypto Infrastructure Center
- Ripple's RLUSD stablecoin gains ADGM approval as "Accepted Fiat-Referenced Token," enabling regulated use in collateral, lending, and prime brokerage. - With $1.26B market cap, RLUSD's institutional adoption grows due to transparent reserves and redemption rights in UAE's crypto-friendly framework. - ADGM designation positions UAE as global crypto infrastructure hub, aligning with Ripple's cross-border settlement strategy and regional regulatory innovation. - Approval follows Dubai's DIFC endorsement, re
Ripple's RLUSD Stablecoin Gains Regulatory Approval in Abu Dhabi
Ripple’s RLUSD, a stablecoin pegged to the US dollar, has achieved a major regulatory milestone in the United Arab Emirates. On November 27, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) officially recognized RLUSD as an “Accepted Fiat-Referenced Token.”
This status enables licensed financial entities within the ADGM to utilize RLUSD for a variety of regulated purposes, such as collateral on trading platforms, lending activities, and prime brokerage services, provided they adhere to strict compliance standards regarding reserve management and transparency. With this approval, RLUSD joins a select group of digital tokens authorized under ADGM’s robust regulatory framework, further establishing the region as a leader in institutional digital asset innovation.
Introduced in late 2024 under a trust charter from the New York Department of Financial Services, RLUSD has rapidly expanded its presence, now boasting a market capitalization of over $1.26 billion, according to DefiLlama. The stablecoin’s growth is largely attributed to institutional interest in a dollar-backed asset with clear reserve policies and guaranteed redemption rights. The recent regulatory green light in Abu Dhabi supports Ripple’s broader ambition to position RLUSD as a preferred settlement asset for cross-border payments and capital market transactions, especially in jurisdictions where regulatory certainty encourages adoption. This move follows earlier approval in Dubai, where the Dubai Financial Services Authority (DFSA) authorized RLUSD for use in the Dubai International Financial Centre (DIFC) earlier this year.
The ADGM’s decision highlights the UAE’s emergence as a global center for crypto infrastructure. Regional financial institutions, such as Zand Bank and Absa, have already adopted Ripple’s blockchain-based payment technologies, taking advantage of the UAE’s forward-thinking regulatory stance. For Ripple, gaining approval in Abu Dhabi means entering a market that views stablecoins as essential financial infrastructure rather than speculative tools. Jack McDonald, Ripple’s Senior Vice President of Stablecoins, described the achievement as proof of the company’s dedication to regulatory integrity and building trust.
Market Impact and Future Prospects
Being included in ADGM’s regulatory framework could pave the way for RLUSD’s deeper integration into settlement and lending operations, especially as Abu Dhabi’s financial sector increasingly embraces tokenized assets. The stablecoin’s rising market cap—driven by institutional issuance and on-chain activity on both Ethereum and the XRP Ledger—demonstrates its appeal to organizations seeking reliable, regulated digital settlement solutions.
Ripple’s expansion into the Middle East reflects a wider movement among regional financial centers to establish themselves as welcoming environments for cryptocurrency innovation. The UAE’s balanced approach to regulation, which encourages technological advancement while maintaining oversight, has attracted other major players like Animoca Brands and WeRide, both of which have secured approvals for Web3 and autonomous vehicle initiatives in the region. For Ripple, the ADGM’s endorsement strengthens RLUSD’s prospects of becoming one of the world’s leading stablecoins, with its current $1.26 billion market cap signaling robust momentum.
As RLUSD continues to gain acceptance in regulated markets, its influence in cross-border transactions and institutional finance is likely to grow, particularly in areas where conventional stablecoins encounter regulatory challenges.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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