Abu Dhabi Regulator Grants Fiat-Referenced Token Status to Ripple USD Stablecoin

On Thursday, November 27, 2025, the Financial Services Regulatory Authority (FSRA), the financial market regulator for Abu Dhabi Global Market (ADGM), officially designated the Ripple USD stablecoin (RLUSD) as an Accepted Fiat-Referenced Token. This significant ruling grants RLUSD access to regulated financial operations within one of the world's crucial international financial hubs situated in Abu Dhabi, United Arab Emirates.

This new regulatory classification permits institutions licensed under the ADGM framework to integrate RLUSD into their services. Such integration is contingent upon strict adherence to the established requirements for fiat-referenced tokens, particularly concerning reserve management obligations and comprehensive disclosure mandates. The RLUSD stablecoin, which debuted in late 2024, had already surpassed a market capitalization exceeding $1.2 billion USD by the time of this recognition. The token maintains a 1:1 peg to the US dollar and is fully backed by cash and cash equivalents, with its issuance managed under the charter of the New York State Department of Financial Services (NYDFS) Trust Company.

The FSRA's approval builds upon Ripple's existing regulatory foundation across the UAE. This follows the full endorsement received from the Dubai Financial Services Authority (DFSA) in March 2025, and the subsequent authorization for RLUSD usage within the Dubai International Financial Centre (DIFC) in June 2025. Jack McDonald, Senior Vice President of Stablecoins at Ripple, commented that the FSRA's green light underscores the company's dedication to regulatory compliance. He positioned RLUSD as the "premier USD stablecoin for major institutions." Furthermore, Rhys Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted that this approval confirms RLUSD meets the region's high benchmarks for transparency and trustworthiness.

Recognition within the ADGM, renowned for its forward-thinking digital asset regulatory structure, solidifies RLUSD's standing as an institutional-grade asset. The FSRA's decision aligns with a broader regulatory evolution occurring across the UAE. Federal Decree-Law No. 6, enacted in September 2025, brought the decentralized finance (DeFi) and Web3 sectors under the oversight of the UAE Central Bank. This legislation mandates that relevant platforms secure necessary licenses by September 2026. Against this backdrop, pre-approved stablecoins that meet stringent criteria are poised to become the preferred instruments for regulated financial activities.

The acceptance of RLUSD signals that it has successfully navigated the rigorous vetting process established by the FSRA, as detailed in Consultation Paper No. 9, issued on September 9, 2025. These compliance checks covered critical areas such as reserve adequacy, Anti-Money Laundering (AML) traceability, and adherence to broader regulatory standards for accepting foreign tokens. Ripple’s strategy now effectively spans the UAE’s primary financial centers—the ADGM and the DIFC. This dual presence enables the integration of RLUSD into core functions like collateral management, lending, and treasury operations, thereby bolstering the UAE's role as a magnet for institutional capital drawn by regulatory clarity.