The Ripple dollar-pegged stablecoin, RLUSD, has gained regulatory approval in Abu Dhabi, further bridging traditional finance and digital assets as the United Arab Emirates (UAE) tightens its regulations on decentralized finance and Web3 technologies.
RLUSD Recognized in Abu Dhabi’s Financial Market
Ripple recently announced that RLUSD has been officially recognized as a fiat-pegged token in the global market of Abu Dhabi. This recognition allows licensed institutions within the Abu Dhabi Global Market (ADGM) to utilize RLUSD for regulatory activities, underscoring the UAE’s commitment to integrating innovation with clearer regulations.
Located on Al Maryah and Al Reem islands, the ADGM operates as an international financial free zone with its own regulatory framework. The approval was granted by the Financial Services Regulatory Authority, which oversees activities within the zone. Licensed companies are now permitted to use RLUSD for services as long as they comply with set requirements concerning reserve management, transparency, and disclosures.
Launched at the end of 2024, RLUSD is fully collateralized by cash and cash equivalents, maintaining a 1:1 peg to the US dollar. Ripple has reported that the stablecoin currently boasts a market capitalization exceeding one billion dollars and is being adopted for various uses, including collateral and payments.
Ripple’s Expanding Presence in the UAE
The approval in Abu Dhabi marks a significant step in Ripple’s regulatory progress within the UAE’s digital asset ecosystem. In October 2024, Ripple confirmed its pursuit of a license from the Dubai Financial Services Authority (DFSA) to broaden its services across the country. Subsequently, the company received a letter of principle approval to operate within the Dubai International Financial Centre (DIFC).
By March, Ripple secured full regulatory approval to offer cross-border crypto payment services in the DIFC, which operates under its own regulations and is favored by global businesses serving markets in the Middle East, Africa, and South Asia. In June, the DFSA permitted the use of RLUSD for regulated activities within the DIFC, allowing firms within the zone to incorporate the stablecoin into payment and treasury functions.
Ripple has also partnered with Zand Bank and fintech application Mamo as the first adopters of Ripple Payments, designed for institutional transfers powered by blockchain technology.
UAE Strengthens National Framework for Cryptocurrency Oversight
As the UAE consolidates approvals across its financial zones, a national framework is being established to bring more of the digital asset market under central supervision. Recently, authorities introduced a new central bank law that formally places decentralized finance and much of Web3 activity within a regulated framework. Federal Decree Law No. 6 of 2025 became effective in September 2025.
This law mandates that platforms, infrastructure providers, and protocols involved in lending, custody, exchanges, payments, or investment services obtain licenses from the Central Bank of the UAE by September 2026, setting common expectations for businesses operating in the digital finance sector.
Increasing Stablecoin Adoption as Regulations Clarify
The combination of ADGM recognition, DIFC approval, and a national regulatory framework positions RLUSD to play a more significant role in institutional financial services across the UAE. With regulated enterprises across various zones now able to use the stablecoin for defined activities, Ripple’s expansion reflects the broader shift in the UAE’s approach to digital assets.
The recent legislation indicates the UAE’s strategic intent to support innovation while ensuring that digital asset operations adhere to standards applied to other financial services. The approval of RLUSD in Abu Dhabi comes at a time when regulated stablecoins are increasingly utilized for settlement, payments, and collateral in global markets.
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