The FSRA recognized RLUSD as an Accepted Fiat-Referenced Token, enabling the stablecoin to be used within ADGM, the international financial center of Abu Dhabi, according to a Thursday (Nov. 27) press release.
“ADGM is recognized globally for its robust and forward-thinking regulatory leadership, so this approval reinforces RLUSD as a compliant stablecoin that meets the highest standards of trust, transparency and utility,” Reece Merrick, managing director, Middle East and Africa at Ripple, said in the release. “This recognition is yet another step forward for Ripple’s operations in the region, where we are experiencing surging interest in our products.”
Arvind Ramamurthy, chief market development officer, ADGM, said in the release that the organization congratulated Ripple on the achievement and that Abu Dhabi aims to be a leading hub for “the next generation of financial services and digital finance.”
“We look forward to seeing [Ripple] make use of our robust regulatory framework, designed to support the sustainable growth of innovative firms and ensure the highest international standards of governance and compliance, which continues to set global benchmarks in the digital asset space,” Ramamurthy said.
Ripple will continue to work with partners and regulators to promote the adoption of digital asset technology across the Middle East, Merrick said in the release.
RLUSD has received approval from other regulators in the region, including the Dubai Financial Services Authority (DFSA), according to the release.
The stablecoin is issued under a New York Department of Financial Services (NYDFS) Limited Purpose Trust Company Charter and has reached a market capitalization of over $1.2 billion, per the release.
“This momentum is helping drive the next wave of secure, compliant digital asset adoption around the world,” Jack McDonald, senior vice president of stablecoins at Ripple, said in the release.
Ripple announced Nov. 5 that it achieved a valuation of $40 billion after securing an investment of $500 million. The company said at the time that it was in the midst of a “record year of growth” and that RLUSD was among the stablecoins being adopted by institutions for use cases such as treasury payments and collateral.
The company said in April that it integrated RLUSD into its cross-border payment solution, Ripple Payments. The stablecoin features built-in global enterprise utility that improves the speed and efficiency of cross-border payments.
