Ripple’s dollar-backed stablecoin has taken a step into deeper institutional territory after the Financial Services Regulatory Authority in Abu Dhabi added RLUSD to its greenlist.
This approval places the stablecoin within the Abu Dhabi Global Market’s regulated system, a zone that has become an important destination for global firms handling digital assets under clear licensing rules.
The FSRA classified RLUSD as an Accepted Fiat-Referenced Token. Any firm licensed in ADGM can now use it in regulated activity if it satisfies its internal compliance obligations. Banks, payment services, and fintech companies in the region have been searching for stablecoins that fit within strict oversight, and RLUSD now sits among the instruments that can be integrated into settlement and liquidity operations.
“We look forward to seeing them 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. Abu Dhabi’s commitment to fostering innovation, transparency, and trust positions Abu Dhabi as a leading hub for the next generation of financial services and digital finance.”
Ripple connected the approval to the FSRA’s upgraded Digital Asset Regulatory Framework, which was revised earlier in the year to sharpen risk controls while opening the door to supervised institutional models.
“The FSRA’s recognition of RLUSD as a Fiat-Referenced Token reinforces our commitment to regulatory compliance and trust - two non-negotiables when it comes to institutional finance,” said Jack McDonald, Senior Vice President of Stablecoins at Ripple.
Institutional minting fuels a rising market cap
The regulatory milestone arrived during a period of rapid supply expansion. DefiLlama’s tracking shows RLUSD passing 1.26 billion dollars in market capitalization in November. Most of the supply currently resides on Ethereum, where circulation stands slightly above one billion RLUSD. The XRP Ledger, meanwhile, has seen its own rise, with issuance moving above 225 million RLUSD.
This pattern carries weight because RLUSD can be minted only by qualified institutions rather than retail users. When supply increases under those constraints, it often reflects practical usage in settlement, liquidity management, or financing strategies. Ethereum’s share of new issuance has grown quickly throughout 2025, creating questions within the XRP community about how Ripple intends to balance multi-chain activity with its long-standing promotion of the XRP Ledger.
RLUSD’s reserve structure has been essential to gaining approvals in regulated markets. It is issued under a New York DFS Limited Purpose Trust Charter, which requires segregated reserves, independent attestations, and backing in liquid dollar instruments held to established standards. These mechanisms form the legal foundation that regulators in the UAE and elsewhere have been expecting from dollar-backed digital tokens.
“The UAE continues to set a global benchmark for digital asset regulation and innovation,” said Reece Merrick, Managing Director, Middle East and Africa at Ripple.
Positioned for greater influence among stablecoins
In market-cap terms, RLUSD sits outside the leading group of global stablecoins. CoinGecko’s rankings place it around the thirteenth position. Moving toward the upper tier would require surpassing assets such as DAI, which hold significantly larger supply.
Whether RLUSD reaches that bracket will likely depend on continued institutional onboarding, regulatory alignment in jurisdictions that demand formal licensing, and the stability of the reserve model that underpins the token.
Another major step from #Ripple to ensure $RLUSD becomes a top 5 stablecoin.
— Nick | Crypto Crusader (@NCashOfficial) November 27, 2025
This is very bullish and reinforces the work Ripple is putting in to ensure they have the highest grade compliance globally.
It's also bullish for $XRP since issuance has been increasing significantly… https://t.co/15qoCMhTtY
As regulators increasingly define the boundaries for dollar-backed tokens, the stablecoins built under trust-charter conditions may gain an advantage in cross-border financial settings.
RLUSD now stands in that category, backed by a fresh approval in one of the more attentive digital-asset jurisdictions and supported by a minting base shaped entirely by institutional usage. How its growth unfolds across Ethereum and the XRP Ledger will likely influence its next stage, especially as financial institutions evaluate which networks can support long-term operational requirements.
Oleksii Shumak
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
