In this post:
- The DFSA has authorized the usage of Ripple’s stablecoin, RLUSD, in Dubai’s DIFC.
- Operating under both DFSA and NYDFS laws, RLUSD is 1:1 backed by US dollars.
- In the UAE, Ripple will incorporate RLUSD into its authorized global payments system.
The Dubai Financial Services Authority (DFSA) has formally authorized the usage of Ripple’s stablecoin, RLUSD, within the Dubai International Financial Centre (DIFC), the company announced Tuesday.
With this clearance, Ripple and other DFSA-licensed companies are now able to legally employ RLUSD in Dubai’s financial free zone. According to Ripple, the RLUSD is 1:1 backed by US dollars and is backed by liquid, high-quality assets that have segregated reserves, external audits, and unambiguous redemption rights.
According to reports, the stablecoin is intended for business use rather than for sporadic retail use. According to Jack McDonald, Senior Vice President of Stablecoins at Ripple, the company’s objectives are reflected in the new permission. “Our dedication to creating a stablecoin that satisfies the highest standards of trust and transparency is demonstrated by the DFSA’s approval of RLUSD.”Jack said.
He added that the stablecoin’s regulatory-first design is tailored to push institutional use of blockchain across international markets, beginning with cross-border payments.
RLUSD is incorporated into Ripple’s payment mechanism
Now that the DFSA has given its clearance, Ripple can include RLUSD into its DFSA-licensed payment system. This enables the business to integrate the capabilities of a blockchain-based system with a reliable digital currency that can function seamlessly over its current worldwide payout network.
RLUSD was designed for companies who required more dependable transaction rails, as opposed to stablecoins made for users trading tokens on exchanges. It focuses on the problems with speed, expense, and complexity that are typical of conventional international payments.
Any other licensed business operating inside the DIFC is likewise covered by the approval. This implies that other DFSA-regulated businesses can now use RLUSD lawfully. According to Ripple, there were around 7,000 businesses operating in the DIFC at the end of 2024, indicating a wide range of possible adopters.
According to Ripple, stablecoin activity in the region increased by 55% in 2024 compared to the previous year. The region is a hive of cryptocurrency activity, according to Reece Merrick, managing director of Ripple for the Middle East and Africa. According to Reece, “RLUSD’s DFSA approval is yet another step forward for Ripple’s operations in the region.”
Ripple has already secured agreements to implement its regulated infrastructure. The company recently confirmed that Zand Bank and Mamo will be the first customers in the UAE to start using Ripple’s blockchain-powered payments offering.
Alongside the news is Ripple’s new collaboration with local company Ctrl Alt, which will bolster the new Real Estate Tokenization Project of the Dubai Land Department (DLD). By putting real estate title deeds straight onto the XRP Ledger, that project will bring blockchain technology to land ownership in a concrete, official manner.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
