a breakthrough for digital finance in the Middle East

Ripple has announced a significant advancement for its stablecoin Ripple USD (RLUSD): the token, pegged to the US dollar, has been recognized as an Accepted Fiat-Referenced Token by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. 

This approval allows the use of RLUSD within the Abu Dhabi Global Market (ADGM), the international financial center of the capital of the United Arab Emirates.

The FSRA’s decision strengthens the position of RLUSD as a reliable and regulatory-compliant asset, paving the way for broader adoption of the stablecoin throughout the Middle East. The approval follows other regulatory recognitions obtained by Ripple in the region, confirming a well-structured expansion strategy.

RLUSD: a stablecoin designed for institutional trust

RLUSD was launched at the end of 2024 and, in less than a year, achieved a market capitalization exceeding 1.2 billion dollars. The token is issued under the supervision of the New York Department of Financial Services (NYDFS), through a Limited Purpose Trust Company Charter. This ensures a rigorous and transparent governance structure.

The stablecoin offers 1:1 backing with US dollars, supported by high-quality liquid assets. Security measures include particularly careful reserve management, asset segregation, independent third-party attestations, and clear redemption rights for users. These elements are designed to meet the expectations of both regulators and institutional investors.

According to Jack McDonald, Senior Vice President of Stablecoins at Ripple:

McDonald highlights how RLUSD, with its growing adoption in areas such as collateral and payments, is rapidly becoming a benchmark stablecoin for major financial institutions.

Abu Dhabi: A Global Model for Digital Asset Regulation

The Abu Dhabi Global Market stands out internationally for its advanced regulatory standards and its ability to attract innovation in the financial sector. The FSRA, in recognizing RLUSD, confirms ADGM’s commitment to positioning itself as a benchmark for the sustainable growth of innovative enterprises and for promoting transparency and trust in digital markets.

Reece Merrick, Managing Director Middle East and Africa at Ripple, stated: 

Arvind Ramamurthy, Chief Market Development Officer at ADGM, added: 

New Opportunities for the Adoption of Digital Assets

The regulatory clarity achieved with the recognition of RLUSD is crucial for accelerating the use of the stablecoin in key business use cases. Among these, the integration into Ripple’s cross-border payment solution stands out, as well as the ability to offer secure on- and off-ramps to the crypto ecosystem and support for capital markets through Ripple Prime.

The approval from the FSRA also represents a significant milestone in Ripple’s expansion strategy in the Middle East and Africa. Recently, the company announced a strategic partnership in Bahrain, marking its entry into the Kingdom, and acquired its first custody client in Africa, Absa Bank. These developments add to previous collaborations with Zand Bank and Mamo in the United Arab Emirates, the first institutions to adopt Ripple’s blockchain-based payment solution.

Ripple: Crypto Solutions for Global Finance

Ripple confirms itself as one of the leading players in the fintech landscape, offering crypto solutions designed for business needs. The Ripple Payments platform leverages blockchain to make international payments faster, more transparent, and accessible. Ripple Custody provides clients with a secure way to store and manage digital assets, while Ripple Prime offers global multi-asset prime brokerage services for institutional clients.

The stablecoin RLUSD and the cryptocurrency XRP are central elements of these solutions, enabling traditional finance to become more efficient and exploring new ways of utilizing digital assets.

The Future of Digital Finance Passes Through Abu Dhabi

The recognition of RLUSD as a Fiat-Referenced Token by the FSRA of Abu Dhabi marks a decisive step towards greater adoption of digital assets in the Middle East. Thanks to clear and advanced regulation, Abu Dhabi is reaffirmed as a global hub for digital finance, attracting innovative companies like Ripple and fostering the growth of a secure, transparent, and cutting-edge financial ecosystem.

The growing demand for digital solutions, combined with institutional trust guaranteed by assets like RLUSD, suggests a future where traditional and digital finance will be increasingly integrated, benefiting businesses, investors, and consumers worldwide.