XRP News Today: As Tether and USDC face scrutiny, UAE's RLUSD emerges as compliant stablecoin alternative.

Ripple's RLUSD stablecoin has secured regulatory approval in Abu Dhabi, marking a pivotal expansion for the USD-backed token in the Middle East. The Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority (FSRA) recognized RLUSD as an Accepted Fiat-Referenced Token, enabling licensed firms to use it for regulated activities such as payments, collateral, and treasury management according to reports. This approval, effective in late 2025, positions RLUSD as a compliant alternative to major stablecoins like Tether (USDT) and Circle's USDC, which face regulatory scrutiny in other jurisdictions according to analysis.

RLUSD, launched in late 2024, operates under a New York Department of Financial Services (NYDFS) Limited Purpose Trust Company Charter. It maintains a 1:1 peg to the US dollar, backed by high-quality liquid assets, and includes third-party attestations and strict reserve management to meet institutional standards according to industry reports.

With a market capitalization exceeding $1.2 billion, the token has gained traction in core financial use cases, including cross-border payments and collateral, as noted by Jack McDonald, Ripple's senior vice president of stablecoins according to company statements.

The UAE's regulatory environment has become a focal point for digital asset innovation, with ADGM and Dubai's International Financial Centre (DIFC) leading the charge. Ripple previously secured approvals in DIFC in June 2025, allowing RLUSD to be used for similar purposes according to official announcements. The ADGM approval reinforces the UAE's role as a global hub for compliant crypto solutions, with Abu Dhabi's regulatory framework attracting firms seeking clarity and stability according to industry analysis. Arvind Ramamurthy, ADGM's chief market development officer, highlighted the emirate's commitment to fostering innovation while maintaining "the highest international standards of governance and compliance" according to official statements.

Ripple's expansion in the UAE is part of a broader strategy to integrate RLUSD into institutional finance. The company has partnered with UAE-based Zand Bank and fintech app Mamo to leverage its blockchain-based payment infrastructure according to company reports. Additionally, RLUSD's approval in ADGM aligns with the UAE's Federal Decree Law No. 6 of 2025, which extends central bank oversight to decentralized finance (DeFi) and Web3 ecosystems, further legitimizing digital assets in the region according to regulatory analysis.

The approval is expected to accelerate institutional adoption, particularly in cross-border trade and capital markets. RLUSD's compliance-ready structure reduces risks for banks and payment providers, enabling seamless integration into existing financial systems according to market analysis. Analysts note that the UAE's stablecoin transaction volume grew 55% in 2024, signaling strong demand for regulated solutions according to industry reports. Ripple's CEO, Brad Garlinghouse, emphasized the company's focus on "building products that meet the highest regulatory standards," a strategy that has driven RLUSD's rapid adoption according to company statements.

As Ripple continues to expand RLUSD's footprint, partnerships in Bahrain, Japan, and Africa underscore its global ambitions. The stablecoin's approval in ADGM not only strengthens Ripple's position in the Middle East but also sets a precedent for other jurisdictions seeking to balance innovation with regulatory rigor according to industry analysis.