Ripple’s RLUSD stablecoin has obtained regulatory approval from the Abu Dhabi Global Market (ADGM) in the United Arab Emirates, allowing licensed financial institutions to use this US dollar-pegged token for their regulated financial activities. This approval includes RLUSD among the select tokens authorized under ADGM’s specific financial framework. Ripple, a prominent blockchain company, offers fast, low-cost, and secure financial transactions globally through its cryptocurrency and related products. RLUSD is a stablecoin pegged to the US dollar, designed to provide financial stability and protection against volatility in the crypto market. Stablecoins are considered safer compared to traditional cryptocurrencies because their value is linked to a stable currency or asset. The UAE has developed a clear and supportive regulatory framework in recent years to promote cryptocurrency and blockchain technology growth while ensuring transparency and stability in the financial sector. ADGM is an independent financial free zone that facilitates global-standard financial services and provides legal protections for cryptocurrencies. Following this approval, RLUSD’s usage is expected to increase in the UAE, offering financial institutions and consumers a stable and secure crypto option. However, attention to general crypto market risks and regulatory changes remains essential, as rising popularity of such financial instruments may lead to stricter oversight and regulations.
Source: coindesk
