Ripple’s Regulatory Approval for RLUSD
Ripple has received regulatory approval for its dollar-pegged stablecoin, RLUSD, enabling institutions in Abu Dhabi to utilize it within the Abu Dhabi Global Market (ADGM) financial zone. This development was communicated in a press release on Thursday, highlighting the recognition of RLUSD as an Accepted Fiat-Referenced Token by the Financial Services Regulatory Authority (FSRA), the chief regulatory body overseeing activities in the ADGM.
Jack McDonald, who serves as the senior vice president for stablecoins at Ripple, noted that with a market cap exceeding $1 billion and its increasing integration in critical financial operations such as collateral management and payments, RLUSD is becoming a preferred USD stablecoin among significant institutional players.
This endorsement from the FSRA means that companies licensed by the authority can leverage RLUSD for various authorized activities, contingent upon their adherence to specific compliance requirements concerning fiat-referenced tokens, particularly around reserve management and necessary transparency disclosures.
Ripple’s Expansion in the UAE
Ripple’s ambition in the UAE has also been evident over the past year. In October 2024, the company announced its intention to obtain a license from the Dubai Financial Services Authority (DFSA) to broaden its digital asset services within the UAE market. By the end of that month, Ripple had secured initial approvals and, by March 2025, received full regulatory clearance, enabling it to provide cross-border crypto payment solutions at the Dubai International Financial Centre (DIFC), a prominent economic zone with its independent regulatory framework. In June 2025, the DFSA extended its approval to RLUSD, allowing its use for regulated activities in the DIFC.
Moreover, Ripple has attracted early adopters of its blockchain-powered payment system, Ripple Payments, including fintech app Mamo and Zand Bank. The RLUSD stablecoin, introduced at the end of 2024, is issued under a limited-purpose trust charter granted by the New York Department of Financial Services and is fully backed by cash reserves, ensuring its 1:1 peg with the US dollar.
New Regulations in the UAE
In a related development, the UAE recently enacted a comprehensive central bank law that subjects decentralized finance (DeFi) and Web3 enterprises to formal regulation. This new regulation, Federal Decree Law No. 6 of 2025, in effect since September 2025, mandates that all protocols, platforms, and service providers engaged in payments, lending, or investment services secure licenses from the Central Bank of the UAE by September 2026, thus strengthening the regulatory framework within this dynamic sector.
