Abu Dhabi Regulator Approves Ripple’s Rlusd Stablecoin For...
Ripple’s dollar-backed stablecoin secures a major regulatory win as Abu Dhabi allows licensed firms to use RLUSD inside its international financial center.
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.
Related: Ripple vs. XRP vs. XRP Ledger: Key Differences, Explained
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.
Source: CoinTelegraph
