Ripple's stablecoin RLUSD has achieved a significant institutional growth phase following its official recognition by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. This endorsement has unlocked its regulated use in the Abu Dhabi Global Market (ADGM), aligning with RLUSD's market cap peak of $1.261 billion in November. Such developments hint at its potential to secure a spot among the world's top five stablecoins.

As of November 27, RLUSD was "greenlisted" by FSRA, enabling its use as collateral on exchanges, for lending, and on prime brokerage platforms within the ADGM, contingent on compliance with specific regulations. This move aligns with updates to the FSRA's Digital Asset Regulatory Framework aimed at driving institutional adoption.

Institutional use showcases the stablecoin's market cap rise past $1.26 billion, with growth marked on both Ethereum and the XRP Ledger (XRPL). Ethereum hosts a large portion of the issuance, which has spiked significantly compared to XRPL. The article questions XRP's relevance given Ethereum's major role in RLUSD distribution.

Despite these challenges, continued robust institutional adoption, coupled with strategic approvals across the Middle East, point towards RLUSD's steady advancement. Analysts believe that with these trends, RLUSD could enter the top five stablecoins based on market cap.