Ripple’s dollar backed stablecoin RLUSD has secured a significant regulatory milestone after receiving designation as an Accepted Fiat Referenced Token inside the Abu Dhabi Global Market, creating new pathways for institutional adoption across a jurisdiction known for its strict oversight of digital assets. The approval allows firms licensed by the Financial Services Regulatory Authority to use RLUSD for regulated activity, placing the token within a highly controlled environment where banks and payment companies have increasingly sought dependable settlement assets. The clearance signals growing interest in structured stablecoin frameworks across the Middle East, where several financial institutions have emphasized the need for digital payment rails equipped with clear reserve requirements and redemption guarantees. RLUSD’s entry into ADGM expands Ripple’s regional footprint following earlier activity in Bahrain and highlights the continued appetite for tokenized settlement infrastructure among market participants who prioritize regulatory certainty over experimental issuers operating without formal guardrails.
The rise of RLUSD in institutional markets has been driven by its reserve transparency and defined redemption structure, which have helped the token surpass 1.2 billion dollars in circulating supply since its introduction under a New York DFS trust charter. Its growing presence within enterprise settlement flows shows how regulated tokens are increasingly positioned as operational components rather than speculative instruments. Banks and payment companies in the Gulf have already begun integrating Ripple’s network to support cross border payments, using RLUSD as a controlled dollar instrument that can function inside strict compliance frameworks. Abu Dhabi’s regulatory classification reinforces this model by allowing the stablecoin to operate inside a ring fenced jurisdiction designed specifically for licensed intermediaries handling tokenized financial products. The approval also differentiates RLUSD from issuers still facing legal uncertainty in the United States and parts of Europe, giving Ripple an advantage in markets where institutions are seeking compliant digital assets before expanding exposure to broader tokenized settlement ecosystems.
Regulatory clarity in the UAE carries broader implications for stablecoin infrastructure as jurisdictions with bank friendly digital asset frameworks have increasingly become hubs for tokenized finance experiments. ADGM’s decision reflects a continued trend toward recognizing stablecoins as core components of digital settlement systems rather than instruments limited to retail trading. Regional institutions including Zand Bank in the UAE and Absa in Africa have already adopted Ripple’s rails this year, establishing routes for RLUSD to serve collateral and payment functions across multiple corridors. As financial regulators refine classifications for fiat referenced tokens, the acceptance of RLUSD inside one of the world’s most conservative regulatory environments underscores how structured stablecoin models are gaining legitimacy in global markets. The development strengthens the view that regulated dollar tokens may become foundational elements of institutional settlement infrastructure, especially in jurisdictions seeking to expand tokenized market activity with clear operational standards.
