Ripple Stablecoin Receives Dubai Approval
The Dubai Financial Services Authority (DFSA), which oversees the Dubai International Financial Centre (DIFC), has granted approval for Ripple’s RLUSD stablecoin.
With this approval, DIFC-based companies can now utilize RLUSD for a variety of virtual asset services, such as payments and treasury functions.
The DIFC operates as a free economic zone serving businesses across the Middle East, Africa, and South Asia. By the end of 2024, nearly 7,000 businesses were registered there.
According to the DIFC’s regulatory framework, only DFSA-recognized tokens are permitted within the zone’s regulated ecosystem.
Ripple has reported a surge in demand for crypto-related solutions from UAE businesses.
Reece Merrick, Ripple’s managing director for the Middle East and Africa, noted growing interest from companies of all sizes in cross-border payments and digital asset custody.
Ripple is collaborating with regional partners like Zand digital bank and fintech firm Mamo, who are expected to be among the first to adopt RLUSD for regulated payment services.
Ripple also confirmed RLUSD will be used to support the Dubai Land Department’s real estate tokenization initiative by recording title deeds on the XRP Ledger.
The DLD launched the pilot phase of this initiative in March, aiming to tokenize property ownership records using blockchain.
When addressing how stablecoins compare to traditional financial systems, a Ripple spokesperson stated that crypto and blockchain are not meant to replace fiat systems but rather complement them.
They emphasized that traditional systems are not designed for real-time global commerce, and enterprise-grade stablecoins like RLUSD provide a faster, cheaper, and more transparent alternative, particularly in regions with limited fiat liquidity.
The spokesperson added that adoption hinges on simplicity: users want practical, effective solutions without needing to become crypto experts.
The DFSA’s approval of RLUSD follows Ripple’s full licensing in the DIFC on March 13.
RLUSD is among a small number of stablecoins approved by both the DFSA and the New York Department of Financial Services (NYDFS), which issued its initial approval on December 10.
While NYDFS serves as RLUSD’s primary regulator, the DFSA’s approval permits its use within DIFC-regulated virtual asset services.
In addition to RLUSD, the DFSA has also recognized Circle’s USDC and EURC stablecoins for use within the DIFC zone.
Sources:
https://cointelegraph.com/news/dubai-land-department-real-estate-tokenization-ripple
https://decrypt.co/323652/ripple-gains-regulatory-approval-for-rlusd-stablecoin-in-dubai
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