Ripple’s dollar-pegged stablecoin, RLUSD, has been approved for use by institutions in Abu Dhabi. The local financial watchdog recognized it as an Accepted Fiat-Referenced Token.
This approval allows regulated companies to use RLUSD within the Abu Dhabi Global Market. This is a special financial zone located on Al Maryah and Al Reem Islands. A Ripple executive stated that RLUSD is becoming a preferred stablecoin for major institutions. He cited its use in payments and as collateral.
The green light came from the Financial Services Regulatory Authority. Licensed companies can now use RLUSD for permitted activities. They must follow specific rules, including those for managing reserves and making disclosures.
This is part of Ripple’s larger push into the United Arab Emirates. In 2024, the company began seeking a license from the Dubai Financial Services Authority. It received full regulatory approval in March of this year. This allows Ripple to offer cross-border crypto payment services in the Dubai International Financial Centre.
In June, Dubai’s regulator also approved RLUSD for use. This lets companies in that financial zone use the stablecoin for payments and treasury management. Ripple has also partnered with Zand Bank and the fintech app Mamo in the UAE. These are early users of its Ripple Payments system.
RLUSD was launched in late 2024. It is issued under a trust charter from New York regulators. The stablecoin is pegged 1:1 to the US dollar. It is fully backed by cash and cash equivalents.
This development occurs as the UAE introduces broader crypto regulations. A new central bank law was passed recently. It brings decentralized finance and much of the Web3 sector under formal oversight.
The law requires platforms involved in payments, lending, and exchanges to get licenses. They must obtain these licenses from the Central Bank of the UAE by September 2026.
