XRP News Today: Abu Dhabi's Approval Boosts RLUSD to $1B, Fueling Fintech Hub Ambitions

Ripple's RLUSD stablecoin has surged past $1 billion in circulating supply on Ethereum, a milestone driven by regulatory approval in Abu Dhabi and growing institutional demand for compliant digital assets. The stablecoin, launched in December 2024, now accounts for over 80% of its total supply on Ethereum, positioning it as one of the fastest-growing regulated USD-backed tokens in the market. This expansion follows the Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA) recognizing RLUSD as an "Accepted Fiat-Referenced Token," enabling its use for collateral, settlements, and lending within the UAE's financial hub.

The regulatory endorsement has unlocked institutional adoption, particularly in the Middle East, where ADGM-licensed entities can now integrate RLUSD into their operations. Ripple's stablecoin is fully backed by cash and U.S. Treasury securities, issued through Standard Custody & Trust Company, a New York-chartered trust firm. This structure mirrors compliance frameworks of established stablecoins like USDC and PYUSD, offering institutions a trusted alternative to less regulated options. The approval also aligns with Abu Dhabi's broader push to establish itself as a global fintech hub, attracting projects with clear regulatory compliance.

Ethereum's dominance in RLUSD's growth stems from its deep DeFi infrastructure, lending protocols, and cross-chain liquidity. Bridges between the XRP Ledger (XRPL) and Ethereum have facilitated seamless movement of RLUSD, enabling use cases ranging from decentralized finance to corporate settlements. While RLUSD originated on XRPL-where it accounts for 77% of stablecoin value- Ethereum's scale has become its primary distribution channel, competing directly with top-tier stablecoins. Daily trading volumes now exceed $43 million, signaling rising adoption among traders and institutions.

The stablecoin's rapid ascent has positioned it among the top 10 stablecoins by market capitalization, though it remains smaller than leaders like USDT and USDC. Analysts note that RLUSD's regulated pedigree and multi-chain presence give it a unique edge as global regulators prioritize transparency in digital assets. Ripple's strategic focus on institutional partnerships, including a custody agreement in the UAE for tokenizing real-world assets, further underscores its ambitions to expand beyond the XRP ecosystem.

Looking ahead, RLUSD's success hinges on sustaining institutional trust and expanding liquidity. While challenges remain, including competition from entrenched stablecoins and broader crypto market volatility, Ripple's emphasis on compliance and cross-border utility positions RLUSD to capture a meaningful share of the regulated stablecoin market in 2026.