Institutional Use of Ripple USD Expands Across UAE Financial Zones
Ripple’s dollar-backed stablecoin, RLUSD, has secured a major regulatory milestone in the UAE after being formally approved for institutional use inside the Abu Dhabi Global Market (ADGM). The recognition classifies RLUSD as an Accepted Fiat-Referenced Token, allowing licensed financial firms in the free-zone to integrate the asset into payments, treasury operations and other regulated activities.
The approval comes as the UAE accelerates oversight of digital assets. ADGM’s Financial Services Regulatory Authority confirmed that firms operating with RLUSD must comply with strict requirements on reserve management, transparency and asset backing, ensuring the token remains fully collateralized with cash and equivalents.
Jack McDonald, senior vice president of stablecoins at Ripple, said the decision reflects growing institutional confidence. “With adoption rising across collateral, settlements and cross-border payments, RLUSD is becoming a preferred USD stablecoin for major financial players,” he noted.
UAE Strengthens Oversight as Ripple Expands Presence
Ripple has been steadily deepening its footprint in the UAE’s regulated virtual-asset ecosystem. The firm previously received full approval to offer crypto-enabled payment services in the Dubai International Financial Centre, and RLUSD was later cleared for use by companies operating within that jurisdiction.
Analysts say the dual approvals signal the UAE’s intent to position itself as a global financial hub with clear digital-asset rules.
The momentum comes shortly after the UAE enacted a new central bank law bringing DeFi, Web3 services and digital-asset infrastructure providers under unified regulatory oversight. Industry participants must obtain licenses by September 2026, marking a significant shift toward structured governance.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.