Ripple has secured a key regulatory win in the Gulf as Abu Dhabi’s Financial Services Regulatory Authority (FSRA) has recognized Ripple USD (RLUSD) as an “Accepted Fiat-Referenced Token,” effectively greenlisting the USD-backed stablecoin for use within Abu Dhabi Global Market (ADGM).
Ripple Adds Another Middle East Win
The designation means RLUSD can now be used by FSRA-licensed “Authorised Persons” for applicable regulated activities inside ADGM, including its use as lending collateral. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted the significance in a post on X, calling the approval “another milestone for Ripple here in the Middle East” and noting that “RLUSD is now approved for use as lending collateral within @ADGlobalMarket.” He added that 2025 had brought “awesome momentum for Ripple in the Middle East” and said he “can’t wait to keep building on these solid foundations as we head into 2026.”
The move slots RLUSD into ADGM’s dedicated framework for fiat-referenced tokens (FRTs), under which only assets granted “Accepted” status may be used by regulated firms for key activities such as custody, dealing and operating venues. For RLUSD, this shifts it from being merely technically usable to being explicitly permitted under one of the most structured digital asset regimes in the region.
Jack McDonald, Senior Vice President of Stablecoins, framed the approval as a validation of the product’s institutional positioning. “The FSRA’s recognition of RLUSD as a Fiat-Referenced Token reinforces our commitment to regulatory compliance and trust – two non-negotiables when it comes to institutional finance,” he said. With “a market capitalization of over $1 billion and growing adoption in core financial uses like collateral and payments,” McDonald argued, RLUSD is “quickly becoming a go-to USD stablecoin for major institutions.”
RLUSD is issued under a New York Department of Financial Services Limited Purpose Trust Company Charter and, according to the company, has grown to more than $1.2 billion in market capitalization since launching in late 2024. The company emphasises 1:1 USD backing in high-quality liquid assets, strict reserve segregation, third-party attestations and clear redemption rights, aiming squarely at regulatory and institutional expectations rather than retail speculation.
From ADGM’s side, the move is also being presented as a proof point for Abu Dhabi’s regulatory architecture. “We congratulate Ripple on achieving this important milestone,” said Arvind Ramamurthy, Chief Market Development Officer at ADGM. He pointed to ADGM’s “robust regulatory framework, designed to support the sustainable growth of innovative firms and ensure the highest international standards of governance and compliance,” and argued that Abu Dhabi’s focus on “innovation, transparency, and trust positions Abu Dhabi as a leading hub for the next generation of financial services and digital finance.”
The RLUSD recognition adds to Ripple’s rapidly expanding Middle East footprint. In the UAE, the stablecoin has also been cleared in Dubai’s DIFC through the DFSA’s recognised token regime, while in the broader region Ripple has announced a new strategic partnership in Bahrain and onboarded Absa Bank as its first custody client in Africa. RLUSD is being integrated across Ripple’s own stack – including Ripple Payments, Ripple Custody and Ripple Prime – to function as a settlement and collateral asset for cross-border payments, institutional trading and capital markets.
At press time, XRP traded at $2.20.
Featured image created with DALL.E, chart from TradingView.com
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