RLUSD gains Abu Dhabi approval to operate as a payment token

On Thursday, Abu Dhabi Global Market’s Financial Services Regulatory Authority recognized RLUSD, Ripple’s dollar-backed stablecoin, as an Accepted Fiat-Referenced Token. The designation allows FSRA-licensed entities to use RLUSD for regulated activities within the ADGM.

The decision places RLUSD within a limited group of tokens permitted inside ADGM’s ring-fenced financial system. ADGM’s framework is known for strict token classifications and alignment with banking standards used by banks and payment firms in the region.

RLUSD launched in late 2024 under a New York Department of Financial Services trust charter. Circulating supply has surpassed $1.2 billion, ranking the token as the 10th-largest stablecoin by market value, based on CoinGecko data.

Ripple has been positioning RLUSD for enterprise transactions, and the token has begun to appear in collateral and settlement flows among its clients. RLUSD is being integrated into Ripple’s cross-border payments stack for use as collateral and settlement across client networks, according to the company.

The FSRA’s Accepted Fiat-Referenced Token category covers tokens backed by fiat reserves and sets rules on issuance, redemption, and disclosures. Recognition under this category enables regulated ADGM firms to use RLUSD for payments and settlement under the authority’s oversight.

Ripple has expanded in Bahrain and reported continued growth across the Gulf. Financial institutions in the Middle East and Africa, including Zand Bank in the UAE and Absa in Africa, have integrated Ripple’s payment rails this year, according to the company.

In the UAE and neighboring markets, regulated stablecoins are used as infrastructure for cross-border payments and financial-market operations.