Ripple's Stablecoin Gains Approval In Abu Dhabi Amid Solana ETF Outflows

By: Eliza Bennet

In a significant regulatory development, Ripple's dollar-pegged stablecoin RLUSD has been greenlighted for institutional use in the Abu Dhabi Global Market (ADGM), marking a major milestone for the digital asset. The approval designates RLUSD as an Accepted Fiat-Referenced Token within ADGM, a renowned international financial center located on Al Maryah and Al Reem Islands in Abu Dhabi, which is known for its burgeoning fintech ecosystem.

Jack McDonald, Ripple's Senior Vice President of Stablecoins, expressed optimism about the increased adoption of RLUSD, attributing its growing popularity among major institutions to its stability and market capitalization exceeding $1 billion. This regulatory endorsement is expected to enhance the adoption of RLUSD in key financial sectors such as collateralization and transaction processing, further establishing it as a cornerstone in the cryptocurrency space.

Meanwhile, the US spot Solana exchange-traded funds (ETFs) have encountered their first net outflow since their inception. Notably, the 21Shares Solana ETF (TSOL) witnessed a substantial withdrawal of over $34 million in one day, contributing to net outflows totaling $26 million since its launch. This marked a departure from its otherwise unbroken inflow trend, which had drawn significant investor attention.

The pullback experienced by the TSOL ETF contrasts with the performance of other Solana ETFs, such as the Bitwise Solana Staking ETF (BSOL), which saw a significant inflow of $13.33 million in a single day, totaling cumulative inflows of $527.79 million. Despite this turbulence, the broader crypto market exhibits signs of recovery, though challenges remain for Solana-centered financial products amidst these fluctuations.