Abu Dhabi’s Financial Services Regulatory Authority (FSRA) has approved Ripple’s dollar-backed stablecoin product RLUSD as an Accepted Fiat-Referenced Token, as confirmed by a company press statement published on Thursday.
The accepted token designation for RLUSD will enable merchants to utilize the token within the Abu Dhabi Global Market (ADGM) in the capital of the United Arab Emirates. Authorized Persons licensed by the regulator can now accept and issue payments through RLUSD, provided they meet the Fiat-Referenced token trading requirements. Ripple is expected to compete with Tether (USDT) and Circle (USDC) in the Arab economic region.
Ripple enters the UAE market with RLUSD compliance
According to Ripple, the endorsement of RLUSD would boost its volumes and activity. “Regulatory compliance and trust are two non-negotiables when it comes to institutional finance. Growing adoption in core financial uses like collateral and payments is why RLUSD is quickly becoming a go-to USD stablecoin for major institutions,” Senior Vice President of Stablecoins at Ripple, Jack McDonald, noted.
The recognition from Abu Dhabi follows the approval of RLUSD by the Dubai Financial Services Authority for use within the Dubai International Financial Centre in June. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, called the UAE a trendsetter in digital asset policy while reiterating the importance of RLUSD’s regulatory alignment with the jurisdiction’s law.
“The DFSA’s approval of RLUSD is yet another step forward for Ripple’s operations in the region, and we’re seeing huge interest from businesses of all sizes for cross-border payments and digital asset custody solutions…We’re looking forward to working with our regional partners, customers, and regulators to supercharge that growth,” Merrick said.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, said Abu Dhabi’s regulatory environment supports innovation, and that the emirate is committed to “shaping the next generation of global financial services.” In addition, Ripple said the FSRA’s decision will ease RLUSD’s integration into enterprise-focused use cases, including its cross-border payment products, and support capital markets functionality provided through Ripple Prime.
