The Financial Services Regulatory Authority in Abu Dhabi has granted Ripple's dollar-pegged stablecoin recognition as an Accepted Fiat-Referenced Token. Licensed firms operating within the Abu Dhabi Global Market can now deploy RLUSD for permitted activities, according to an announcement made on Thursday.
Jack McDonald, senior vice president of stablecoins at Ripple, stated that the token has surpassed $1 billion in market capitalization. The adoption of RLUSD is growing in core financial applications, including collateral and payments, positioning it as a preferred USD stablecoin for major institutions.
This regulatory decision applies to companies licensed by the authority overseeing the ADGM financial zone. This international financial center operates as a free zone on Al Maryah and Al Reem Islands. Regulated firms must meet compliance requirements for fiat-referenced tokens, which include reserve management and disclosure obligations.
Ripple's Expansion in the UAE
Ripple secured in-principle approval from the Dubai Financial Services Authority in October 2024 as part of its UAE expansion strategy. The company received full regulatory approval in March, enabling cross-border crypto payment services within the Dubai International Financial Centre. The DFSA approved RLUSD for use by DIFC companies in June for regulated activities such as payments and treasury management.
Zand Bank and the fintech app Mamo signed up as early users of Ripple Payments in the UAE. The blockchain-based payments stack represents Ripple's infrastructure play in the region.
UAE's Regulatory Framework for Digital Assets
Federal Decree Law No. 6 of 2025 took effect in September, bringing decentralized finance and Web3 sectors under formal oversight in the UAE. Protocols, platforms, and infrastructure providers involved in payments, lending, custody, exchanges, or investment services must obtain licenses from the Central Bank of the UAE by September 2026.
RLUSD Backing and Peg
The New York Department of Financial Services issued RLUSD under a limited-purpose trust charter in late 2024. The stablecoin maintains a 1:1 peg to the U.S. dollar with full backing by cash and equivalents.