Ripple USD stablecoin (RLUSD) is gaining traction in the traditional finance space as the token has achieved a major regulatory milestone in the Middle East. As per a post shared by Ripple’s Managing Director, Middle East & Africa, Reece Merrick, RLUSD has been approved as “lending collateral.”
What Ripple’s regulatory breakthrough at ADGM means
This approval marks a groundbreaking moment for Ripple. This is because banks, financial institutions and market participants can now use the Ripple USD stablecoin as a trusted asset when borrowing or lending within that financial region.
Notably, RLUSD was approved as lending collateral on the Abu Dhabi Global Market (ADGM). This means that the USD-pegged asset is now an accepted fiat-referenced token that can be used as collateral on regulated platforms within the ADGM financial free zone.
It signals increasing institutional acceptance of Ripple’s stablecoin despite its relative novelty in the cryptocurrency space. This approval of RLUSD in the Middle East could contribute to increased utility, given the region’s growing economic activity on the broader financial market.
The development could help unlock billions in lending activity for the Ripple USD stablecoin, which might serve as a catalyst for growing its market capitalization. Ripple’s RLUSD recently flipped the billion-dollar millstone after its market cap exceeded $1.2 billion.
It clearly strengthens Ripple’s presence in the Middle East, even as it makes expansionary moves into the UAE and Africa. Ripple is strategically positioning itself for real-world utility in these regions, which includes payments to other financial services.
Ripple and competitive positioning
Meanwhile, to boost its reach, Ripple USD, in September 2025, was listed on the Bybit exchange. The move allows Bybit’s over 60 million users to trade RLUSD against USDT. It adds to the list of exchanges that have embraced RLUSD since its debut in the stablecoin market.
This adoption helps contribute to the growth of Ripple USD in the crypto space and could leapfrog it in the rankings in terms of market capitalization.
Interestingly, at the launch of Ripple USD, CEO Brad Garlinghouse assured that it would not just be another stablecoin. According to Garlinghouse, RLUSD will compete favorably with other industry giants like Tether (USDT) and Circle (USDC) for market share.
The move into the Middle East and Africa appears to be part of the strategy to capture a good portion of the market share.