Ripple has garnered approval from the Dubai Financial Services Authority to offer regulated cryptocurrency payment services within the Dubai International Financial Centre.
This makes Ripple (XRP) the first payments company utilizing blockchain technology to receive such a license from the DFSA. As stated in a recent press release, the license enables businesses operating in the UAE to utilize Ripple’s cryptocurrency payment solutions, which are designed to enhance the speed and reduce the cost of cross-border transactions.
Since establishing its presence in the UAE in 2020, Ripple has set up its regional headquarters in the DIFC, with about 20% of its global clientele located in the Middle East. Given the UAE’s substantial trade sector, valued over $400 billion, there lies a significant opportunity for payment systems powered by blockchain technology.
Research from Ripple indicates that 64% of finance professionals in the Middle East and Africa identify accelerated payments as the primary benefit of adopting blockchain. His Excellency Arif Amiri, CEO of the DIFC Authority, embraced Ripple’s expansion, emphasizing Dubai’s dedication to fostering blockchain innovation.
Reece Merrick, managing director for Ripple in the Middle East and Africa, remarked that the DFSA license will enhance Ripple’s ability to cater to businesses seeking quicker and more transparent payment solutions. The company anticipates an increase in the adoption of stablecoins for instant transactions among UAE companies.
“Achieving this DFSA license is a significant milestone that will allow us to better address the rising demand for speedy, cost-effective, and transparent cross-border transactions in one of the largest hubs for such payments globally.”
— Reece Merrick, Ripple’s managing director for the Middle East and Africa
As of March 13, Ripple has secured over 60 international licenses, including in regions such as Singapore, Ireland, and various U.S. states. The company has also launched RLUSD, which has seen its market capitalization exceed $130 million since December, as part of its strategy focusing on stablecoins.
Furthermore, Ripple is advancing in other domains. The Bank of England is currently evaluating Ripple’s Interledger Protocol to facilitate quicker cross-border payments. Concurrently, interest in XRP ETFs is growing in the United States, with asset managers like Bitwise, Grayscale, Franklin Templeton, and 21Shares having submitted applications for XRP ETFs and pending approval from the Securities and Exchange Commission.