The approval allows licensed institutions to use RLUSD for regulated financial activities.
Ripple’s RLUSD has received official approval to be used in Abu Dhabi’s main financial market. This comes as the firm builds on its growth in global financial markets.
RLUSD Gains Approval In Abu Dhabi’s Global Markets
Ripple announced in a press release that its stablecoin is now officially recognized as an Accepted Fiat-Referenced Token. This was approved by the Financial Services Regulatory Authority (FRSA) of the Abu Dhabi Global Market.
The approval would allow licensed institutions that operate under the FSRA to use the coin for approved activities. This would be based on whether they meet the regulator’s conditions.
The green light proves ADGM’s reputation as one of the most positive regulators of digital assets in the world, says Ripple.
Jack McDonald, the Senior Vice President of Ripple for Stablecoins, described this as a validation of the company’s emphasis on compliance and reliability.
“The FSRA’s recognition of RLUSD as a Fiat-Referenced Token strengthens our commitment to regulatory compliance and trust,” he said. “With a market capitalization of more than $1 billion… RLUSD is rapidly emerging as the go-to USD stablecoin for leading institutions.
FSRA officials also noted that it is the regulator’s intent to support innovative firms operating within Abu Dhabi.
“We congratulate Ripple on achieving this important milestone; we look forward to seeing them make use of our robust regulatory framework designed to support the sustainable growth of innovative firms.” said Arvind Ramamurthy, Chief Market Development Officer, ADGM.
The Abu Dhabi clearance follows progress the firm has made across the Middle East since March. Earlier this year, Ripple secured a DFSA license that opened the door to offering regulated digital-asset services across the wider UAE.
Ripple Expands Global Ecosystem
Just last month, Ripple teamed up with Bahrain’s Fintech Bay to promote the use of blockchain technology in the Gulf region. They also intend to test some payment solutions on the stablecoin.
The firm has also expanded beyond just the Middle East. The company confirmed plans for introducing RLUSD in African markets. They entered into partnerships with three of the major fintech firms of the region. This was Chipper Cash, VALR, and Yellow Card.
Meanwhile, Ripple was already active in the UAE before this. They signed A partnership with Ctrl Alt as part of efforts to help modernize Dubai’s real estate. The move allows the Dubai Land Department to create digital property title deeds on the XRP Ledger.
