Ripple, a leading digital asset infrastructure provider, has announced that its USD-backed stablecoin Ripple USD (RLUSD) has been recognized as an Accepted Fiat Reference Token by Abu Dhabi’s Financial Services Regulatory Authority (FSRA). The company confirmed the news in a blog post on Thursday, noting that this approval will help facilitate the use of RLUSD within the Abu Dhabi Global Market (ADGM), the international financial center of Abu Dhabi and the capital of the United Arab Emirates (UAE).
With this milestone, the Ripple USD-backed stablecoin is now available for use by persons authorized by the FSRA to carry out applicable Regulated Activities. However, it’s worth noting that its use is still subject to ultimate satisfaction and compliance with firm-level regulatory obligations relevant to the use of Fiat-Referenced Tokens.
Ripple execs shares more insight on the development
Jack McDonald, the Senior Vice President of Stablecoins at Ripple while reacting to the development noted that the recognition of RLUSD by FSRA as a Fiat-Referenced Token reaffirms Ripple’s commitment to regulatory compliance and trust. He added that with over $1 billion market capitalization, RLUSD is fast becoming the go-to USD stablecoin for major institutions.
Reece Merrick, Ripple’s managing Director for the Middle East and Africa also stated that the UAE has continued to set a global benchmark for digital asset regulation and innovation. He noted that this approval further reinforces RLUSD as a compliant stablecoin that meets the highest standards of trust, transparency, and utility. Merrick added that Ripple looks forward to working with other partners and regulators to support the safe and rapid adoption of digital asset technology across the Middle East.
Similarly, Arvind Ramamuthy, the Chief Market Development Officer of ADGM also congratulated Ripple on this significant milestone. Ramamuthy stated that he looks forward to Ripple using the ADGM robust regulatory framework to expand stablecoin adoption. The exec further added that Abu Dhabi’s commitment to fostering innovation, transparency, and trust positions it as a leading hub for the next generation of financial services and digital finance.
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