Abu Dhabi Regulator Approves Ripple’s Dollar Stablecoin for Licensed Firms

Ripple’s U.S. dollar-backed stablecoin has secured a major regulatory win in the United Arab Emirates, clearing the way for banks and licensed firms inside Abu Dhabi Global Market (ADGM) to begin using the asset in their operations.

The approval designates Ripple USD (RLUSD) as an Accepted Fiat-Referenced Token, giving regulated institutions the ability to integrate it into payments, settlements, collateral operations, and other permitted financial activities within the ADGM free-zone. The recognition comes from the Financial Services Regulatory Authority, the body that supervises financial activity inside the jurisdiction.

Ripple said the move cements RLUSD’s momentum among large enterprises, noting that the token’s market cap has already surpassed $1 billion. Jack McDonald, Ripple’s head of stablecoins, called the decision an important step toward expanding institutional-grade stablecoin infrastructure across global financial hubs.

Growing Footprint in the UAE

The green light builds on Ripple’s recent regulatory progress across the UAE. Last year the company began pursuing licensing in Dubai’s International Financial Centre (DIFC), securing full authorization earlier this year to offer regulated cross-border crypto payment services. RLUSD was also cleared for use within the DIFC in June, allowing firms there to rely on the stablecoin for treasury and payments operations.

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Ripple has already onboarded local partners, including Zand Bank and fintech platform Mamo, to pilot its payment technology in the region – reinforcing the company’s strategy to anchor its institutional business in the Middle East.
RLUSD, introduced in late 2024, is issued under a New York trust charter and backed entirely by cash and cash-equivalent reserves.

A Shifting Regulatory Landscape for Web3 in the UAE

The approval comes amid a broader tightening of digital-asset oversight in the Emirates. A new nationwide central-bank law, which took effect earlier this year, brings DeFi protocols, Web3 infrastructure, and crypto service providers under formal licensing obligations. Any project offering custody, payments, exchange, lending, or investment-related services must acquire authorization from the UAE Central Bank by September 2026.

Ripple’s stablecoin approval arrives at a moment when digital-asset regulations are rapidly solidifying – positioning RLUSD as one of the earliest stablecoins to secure a comprehensive institutional pathway inside the region.