Ripple's stablecoin, RLUSD, has been officially approved as a "Fiat-Referenced Token" by the Abu Dhabi Global Markets (ADGM) Financial Services Regulatory Authority (FSRA). This makes RLUSD a legally usable stablecoin within ADGM's jurisdiction, allowing ADGM-licensed businesses to utilize RLUSD as long as they meet regulatory requirements.
This approval is significant for Ripple, as it expands its stablecoin business in Abu Dhabi, a prominent financial hub in the Middle East, beyond its XRP-based operations centered in the US and Japan. ADGM has recently unveiled an aggressive regulatory roadmap for global payments and RWA (real-asset tokenization) and is attracting major global companies. RLUSD's approval is also seen as securing a strategic foothold.
In particular, the fact that it has received official approval in Abu Dhabi, where stablecoin regulations are rapidly being established, increases the likelihood that RLUSD will establish itself not simply as a coin for the Ripple ecosystem, but as a regulated token utilized in real-world financial infrastructure. If payment and transaction service providers licensed by ADGM adopt RLUSD for payments, remittances, and liquidity provision in the future, Ripple's global payment network strategy is expected to gain momentum.
This move also contrasts with the uncertain regulatory environment for stablecoins in the United States. Abu Dhabi has already prioritized "regulatory clarity" by accepting numerous global companies, including Circle (USDC), Zcash, and Binance. The inclusion of RLUSD further expands the regulatory-friendly stablecoin ecosystem.
Ripple has been promoting RLUSD as a "payment stablecoin bridging traditional finance and blockchain." With Abu Dhabi regulatory approval, RLUSD's practical usability in Asian and Middle Eastern markets is fully unlocked, and significant changes are expected in the stablecoin competitive landscape.
