Fintech firm Ripple, offering crypto solutions for businesses, announced Abu Dhabi’s Financial Services Regulatory Authority or FSRA’s recognition of USD-backed stablecoin: Ripple USD or RLUSD as a Fiat-Referenced Token.
The step aims to enable the token’s use within the international financial centre of Abu Dhabi, ADGM. Cleared by FSRA’s Authorized Persons, as long as they meet the regulatory requirements, RLUD will be the first Fiat-Referenced Tokens in the region. Reece Merrick, Managing Director, Middle East and Africa at Ripple, said:
The UAE continues to set a global benchmark for digital asset regulation and innovation.
ADGM’s reputation as the global financial hub, backed by strong and modernized regulation, makes this move a pivotal win for Ripple, making RLUSD a reliable, compliant settlement asset in the Middle East, according to official statements. Merrick added:
ADGM is recognized globally for its robust and forward-thinking regulatory leadership, so this approval reinforces RLUSD as a compliant stablecoin that meets the highest standards of trust, transparency, and utility. This recognition is yet another step forward for Ripple’s operations in the region, where we are experiencing surging interest in our products. We look forward to continuing to work with our partners and regulators to support the safe and rapid adoption of digital asset technology across the Middle East
The stablecoin has grown to a market capitalization of more than $1.2 billion since its debut in late 2024, backed 1:1 with US dollars. The recent approval of RLUD from other regulations within the region, such as the Dubai Financial Services Authority or DFSA adds to it. Jack McDonald, Senior Vice President of Stablecoins at Ripple, said:
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. This momentum is helping drive the next wave of secure, compliant digital asset adoption around the world.
Other growing momentum in MENA
In October, Ripple announced their strategic partnership with Bahrain Fintech Bay, the leading fintech incubator and ecosystem builder. The agreement was focused on the development of proofs of concept and pilot projects that fit the country’s fintech ecosystem – contributing to blockchain, cross-border payments, digital assets, stablecoin, and tokenization.
The company also expanded its global custody footprint into Africa in collaboration with Absa Bank. The partnership adds to the developing financial and digital landscape in Africa, building the infrastructure to store tokenized assets, including cryptocurrencies, with security and trust.
With the FSRA partnership, Ripple now gains the opportunity to distribute their tokens across the regions, expanding the opportunity for stablecoins beyond the regular on-ramping and off-rampting to acting as collateral on exchanges, for lending, and on prime brokerage platforms within the ADGM.
