XRP News Today: ADGM's RLUSD Approval Cements UAE's Crypto Leadership

Ripple's RLUSD stablecoin has secured a pivotal regulatory milestone, gaining approval as an Accepted Fiat-Referenced Token in Abu Dhabi's ADGM (Abu Dhabi Global Market). The Financial Services Regulatory Authority (FSRA) of ADGM recognized the stablecoin, enabling licensed entities to use RLUSD for regulated activities such as cross-border payments, collateral, and lending. This endorsement positions RLUSD as a trusted settlement asset in one of the world's most tightly regulated crypto hubs, reinforcing Ripple's strategy to expand its institutional footprint in the Middle East. The approval follows similar regulatory greenlights in Bahrain and Dubai, solidifying the UAE as a key jurisdiction for compliant stablecoin adoption.

RLUSD, launched in late 2024 under a New York DFS trust charter, has surpassed $1.2 billion in market capitalization, reflecting robust institutional demand. The stablecoin's design emphasizes transparency and compliance, with 1:1 U.S. dollar reserves held in high-quality liquid assets, third-party attestations, and clear redemption terms according to regulatory filings. Jack McDonald, Ripple's Senior Vice President of Stablecoins, highlighted the approval as a validation of RLUSD's role in institutional finance, stating, "With a market capitalization of over $1 billion and growing adoption in core financial uses like collateral and payments, RLUSD is quickly becoming a go-to USD stablecoin for major institutions." The ADGM designation also aligns RLUSD with a curated list of tokens permitted in the jurisdiction, enhancing its credibility for conservative institutional players.

The approval underscores the UAE's emergence as a digital-asset innovation leader. ADGM's regulatory framework, known for its strict standards and crypto-friendly policies, has attracted global institutions seeking compliant digital infrastructure. Arvind Ramamurthy, ADGM's Chief Market Development Officer, noted, "We look forward to seeing them make use of our robust regulatory framework, designed to support the sustainable growth of innovative firms." Ripple's expansion in the region includes partnerships with Zand Bank and Mamo in the UAE, as well as Absa Bank in Africa, leveraging RLUSD for blockchain-based payments and settlement workflows. These integrations position RLUSD as a foundational asset for cross-border transactions and capital-market applications, bypassing regulatory hurdles faced by U.S. and European counterparts.

For Ripple, the ADGM approval is a strategic step toward scaling RLUSD's adoption in the Middle East, a region where tokenized settlement systems are advancing faster than in Western markets. The stablecoin's integration into ADGM's ecosystem also supports Ripple's broader vision of using RLUSD as a bridge between traditional finance and blockchain networks. With Ethereum and XRP Ledger (XRPL) hosting the majority of RLUSD's issuance, the stablecoin's growth could further cement XRPL's role in institutional use cases, despite recent Ethereum-centric issuance trends according to market analysis. Analysts suggest RLUSD is on a trajectory to enter the top five global stablecoins by market cap, driven by institutional adoption and regulatory tailwinds.