Ripple’s USD-backed stablecoin RLUSD has been formally recognized as an “Accepted Fiat-Referenced Token” by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
The development enables its use by authorized financial institutions within the Emirate’s international financial center. Additionally, it makes RLUSD one of the first fully regulated fiat-backed stablecoins licensed for institutional use in the Middle East.
What the FSRA Recognition Enables
Under ADGM’s updated fiat-referenced token (FRT) framework, only tokens the FSRA classifies as “Accepted Fiat-Referenced Tokens” may be held, used, or transacted by licensed firms in the jurisdiction. RLUSD now qualifies under this regime, allowing “Authorized Persons” regulated by the FSRA.
These “Authorized Persons” include banks, payment institutions, custodians, brokers, and investment firms. They can use the stablecoin for a range of regulated activities, including:
- Collateral in margin and derivatives trading.
- Secured lending and repo-style financing.
- Prime brokerage and institutional settlement between counterparties.
- Treasury, payments, and internal liquidity management within ADGM.
The activities remain subject to strict conditions. These include full reserve backing, independent attestations, AML/KYC compliance, client-asset segregation, and adherence to FSRA rules governing custody and issuance of FRTs.
RLUSD’s Regional Strategy
The FSRA’s decision aligns RLUSD’s Middle East standing with its U.S. regulatory status. This gives it dual recognition in two of the world’s more stringent oversight regimes. The regulatory clarity positions RLUSD as an institutional-grade settlement asset for cross-border payments. Furthermore, as tokenized securities, and on-chain collateralization across the UAE and potentially wider GCC markets.
ADGM’s move comes as the FSRA finalizes its broader FRT framework. It sets out how fiat-backed stablecoins can be issued, held, and used in regulated contexts. Additionally, it defines how tokens may be “accepted” for use within the financial free zone. RLUSD’s greenlisting is one of the first practical applications of that framework and considered a benchmark for future approvals.
The recognition also strengthens Abu Dhabi’s positioning as a digital asset hub competing with other global centers. These global centers include Singapore, London, and New York.
By establishing a clear, enforceable category for Accepted Fiat-Referenced Tokens, the FSRA aims to attract issuers that can meet high reserve, transparency, and governance standards. Additionally, they should give local and international institutions confidence to integrate such tokens into core financial operations.
READ MORE: Kaspa Coin Price Prediction: Can KAS Sustain This 18% Daily Jump?
