XRP News Today: With Tether and USDC under examination, RLUSD from the UAE stands out as a regulatory-compliant stablecoin option.

Ripple’s RLUSD Stablecoin Gains Regulatory Green Light in Abu Dhabi

Ripple’s RLUSD, a stablecoin backed by the US dollar, has received official approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) within the Abu Dhabi Global Market (ADGM). This milestone allows licensed entities in the region to utilize RLUSD for regulated financial activities, including payments, collateralization, and treasury operations. The approval, which will take effect in late 2025, positions RLUSD as a compliant alternative to leading stablecoins such as Tether (USDT) and Circle’s USDC, both of which have encountered regulatory challenges in other markets.

Key Features and Institutional Standards

Introduced in late 2024, RLUSD operates under a Limited Purpose Trust Company Charter from the New York Department of Financial Services (NYDFS). The stablecoin is fully backed by high-quality liquid assets and maintains a strict 1:1 peg to the US dollar. To ensure transparency and trust, RLUSD undergoes independent third-party attestations and adheres to rigorous reserve management protocols, meeting the expectations of institutional clients.

With a market cap surpassing $1.2 billion, RLUSD has established itself in essential financial sectors, particularly in cross-border payments and as collateral. Jack McDonald, Ripple’s senior vice president of stablecoins, highlighted the token’s growing adoption for these core use cases.

UAE’s Progressive Regulatory Landscape

The United Arab Emirates has emerged as a leader in digital asset regulation, with both ADGM and Dubai’s International Financial Centre (DIFC) at the forefront of fostering innovation. Ripple previously obtained approval for RLUSD in DIFC in June 2025, enabling similar regulated uses. The latest ADGM authorization further cements the UAE’s reputation as a global center for compliant crypto solutions, attracting companies seeking regulatory clarity and stability. Arvind Ramamurthy, ADGM’s chief market development officer, emphasized Abu Dhabi’s dedication to innovation while upholding top-tier governance and compliance standards.

Strategic Partnerships and Regulatory Alignment

Ripple’s growth in the UAE is part of a broader initiative to integrate RLUSD into institutional finance. The company has formed alliances with local entities such as Zand Bank and the fintech platform Mamo to leverage its blockchain-based payment network. The ADGM’s endorsement of RLUSD also aligns with the UAE’s Federal Decree Law No. 6 of 2025, which expands central bank oversight to decentralized finance (DeFi) and Web3 sectors, further legitimizing digital assets within the region.

Driving Institutional Adoption

This regulatory approval is anticipated to accelerate RLUSD’s adoption among institutions, especially in cross-border trade and capital markets. RLUSD’s robust compliance framework minimizes risks for banks and payment processors, facilitating smooth integration into existing financial infrastructures. Industry analysts report that stablecoin transaction volumes in the UAE surged by 55% in 2024, reflecting a strong appetite for regulated digital asset solutions. Ripple’s CEO, Brad Garlinghouse, reiterated the company’s commitment to developing products that adhere to the highest regulatory standards, a strategy that has fueled RLUSD’s rapid uptake.

Global Expansion and Future Outlook

Ripple’s efforts to broaden RLUSD’s reach include forging partnerships in regions such as Bahrain, Japan, and Africa, underscoring its international ambitions. The approval in ADGM not only strengthens Ripple’s presence in the Middle East but also serves as a benchmark for other jurisdictions aiming to balance technological innovation with robust regulatory oversight.