Ripple’s dollar-pegged stablecoin was cleared for use by institutions in Abu Dhabi after winning recognition as an Accepted Fiat-Referenced Token by the local watchdog.
In a Thursday announcement, Ripple said the approval allows regulated firms to deploy Ripple USD (RLUSD) inside the Abu Dhabi Global Market’s (ADGM) financial zone, an international financial center and free zone located on Al Maryah and Al Reem Islands in Abu Dhabi.
“With a market capitalization of over $1 billion and growing adoption in core financial uses like collateral and payments, RLUSD is quickly becoming a go-to USD stablecoin for major institutions,” said Jack McDonald, senior vice president of stablecoins at Ripple.
The green light came from the Financial Services Regulatory Authority, which oversees activity in the ADGM. Under the decision, companies licensed by the regulator can use RLUSD for permitted activities, provided they meet compliance requirements tied to fiat-referenced tokens, including reserve management and disclosure obligations.
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Ripple’s push into the UAE
In October 2024, Ripple revealed it was pursuing a license from the Dubai Financial Services Authority (DFSA) as part of its push to expand digital-asset services in the UAE, securing in-principle approval later that month.
In March, the company confirmed it had received full regulatory approval, allowing it to offer cross-border crypto payment services inside the Dubai International Financial Centre (DIFC), a major free economic zone with its own regulatory framework.
In June, the DFSA approved RLUSD for use by companies operating inside the DIFC, allowing the stablecoin to be used for regulated activities such as payments and treasury management.
In the UAE, Ripple has also signed up Zand Bank and fintech app Mamo as early users of its blockchain-based payments stack, Ripple Payments.
RLUSD, launched in late 2024, is issued under a limited-purpose trust charter from the New York Department of Financial Services. It is pegged 1:1 to the US dollar and fully backed by cash and equivalents.
Related: Abu Dhabi Investment Council triples stake in Bitcoin ETF in Q3: Report
UAE law pulls DeFi and Web3 under central bank oversight
Earlier this week, the UAE passed a sweeping new central bank law that brings decentralized finance (DeFi) and much of the Web3 sector under formal regulatory oversight.
Federal Decree Law No. 6 of 2025, in force since September 2025, requires protocols, platforms and infrastructure providers involved in payments, lending, custody, exchanges or investment services to obtain licenses from the Central Bank of the UAE by September 2026.
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