XRP News Today: ADGM's RLUSD Approval Sets Global Compliance Benchmark for Institutional Stablecoins

Ripple's USD-backed stablecoin RLUSD has been recognized as an Accepted Fiat-Referenced Token by Abu Dhabi's Financial Services Regulatory Authority (FSRA), enabling its use within the Abu Dhabi Global Market (ADGM) for institutional activities. The approval, announced on November 27, 2025, allows licensed firms operating in ADGM to deploy RLUSD for regulated financial services such as collateral management, lending, and cross-border payments, provided they adhere to strict compliance requirements. This milestone positions RLUSD as a key player in the Middle East's evolving digital asset ecosystem, where regulatory clarity is accelerating adoption of stablecoins for institutional-grade applications.

RLUSD, which operates under a New York Department of Financial Services (NYDFS) charter, has a market capitalization exceeding $1.2 billion and is fully backed by 1:1 U.S. dollar reserves held in high-quality liquid assets. The stablecoin's design includes third-party attestations, segregated reserves, and clear redemption rights, aligning with the FSRA's emphasis on transparency.

Jack McDonald, Ripple's Senior Vice President of Stablecoins, highlighted that the approval underscores the company's commitment to "regulatory compliance and trust," essential for institutional finance.

The FSRA's decision reflects ADGM's broader strategy to establish itself as a global hub for digital asset innovation. By creating a robust framework for fiat-referenced tokens, the regulator aims to attract compliant stablecoin issuers and foster trust among institutional users. Arvind Ramamurthy, ADGM's Chief Market Development Officer, praised Ripple's achievement, stating that the approval demonstrates Abu Dhabi's leadership in "setting global benchmarks for governance and compliance in the digital asset space."

Ripple's expansion in the Middle East has gained momentum through strategic partnerships and regulatory approvals. The company recently secured a Dubai Financial Services Authority (DFSA) license to operate in the Dubai International Financial Centre (DIFC) and has partnered with institutions such as Zand Bank and Mamo in the UAE. Additionally, Ripple has expanded its footprint in Bahrain and Africa, with Absa Bank becoming its first custody client on the continent. These developments align with the UAE's broader push to integrate digital assets into its financial infrastructure, including a new federal law that brought decentralized finance (DeFi) and Web3 activities under central bank oversight.

The approval of RLUSD in Abu Dhabi is expected to enhance its utility in cross-border payments, capital markets, and institutional settlement services. Ripple's Prime platform, which offers multi-asset brokerage services, is now positioned to leverage RLUSD for seamless on- and off-ramps between fiat and crypto ecosystems. Analysts note that the move could spur further adoption by banks and fintech firms in the region, where demand for secure, regulated digital assets is growing rapidly.