Ripple has received regulatory approval to introduce its dollar-backed Stablecoin RLUSD to the Dubai International Financial Centre (DIFC). The approval is from the Dubai Financial Services Authority (DFSA), which oversees activities within the Special Economic Zone.
This development marks a new stage in Ripple’s strategy to expand its digital asset infrastructure throughout the Middle East. DFSA’s green light allows RLUSD to operate as a payment rail in Ripple’s existing DFSA-licensed digital asset platform.
This integration can open the door to more than 7,000 companies operating in DIFC using Stablecoin for cross-border transactions, digital assets and related services.
Ripple has previously established a footprint in the region and has received regulatory approval to serve the US$40 billion cross-border payments market for customers in the United Arab Emirates (UAE).
Institutional needs and strategic partnerships for growth
Ripple’s entry into the DIFC follows a broader trend of increased institutional interest in digital assets across the Gulf region. According to Reece Merrick, managing director of the Middle East and Africa, the company has observed rising demand for payment and custody solutions that support crypto.
RLUSD approval is considered a step toward achieving this need through a licensed, regulated infrastructure. Jack McDonald, senior vice president of Ripple Stablecoins, said DFSA’s decision is aligned with the company’s focus on supporting regulated financial innovation in Dubai.
To build its local ecosystem, Ripple is actively working with various regional entities. It has partnered with UAE-based digital bank Zand and fintech company Mamo.
These organizations are expected to become one of the early adopters of the RLUSD-backed Ripple payment tools. Additionally, Ripple interacts with digital infrastructure company Ctrl Alt and Dubai Land Division to provide real estate deeds on XRP Ledger to create a digital property ownership framework powered by Blockchain.
RLUSD surpasses the US market
The RLUSD, launched in December 2024, was fully supported by the US dollar reserves and was initially approved by the New York Department of Financial Services. Stablecoin started trading on platforms such as Uphold and has since expanded to other exchanges including Kraken.
RLUSD currently has a market capitalization of over $300 million, placing it in a global stable market dominated by larger players such as Tether’s USDT and Circle’s USDC, which together accounts for the majority of the industry’s total market capitalization of $250 billion.
Integrating RLUSD into Dubai’s financial landscape may lead to new use cases with remittance-centric new use cases. DIFC position itself as a forward-looking regulatory center for fintech and digital assets, providing a controlled environment for blockchain-based innovation.
With approval, Ripple joins other companies to leverage the legal clarity in the region to provide services related to digital currencies. As stable people gain global addressing and the attractiveness of the Ministry of Finance use, such regional integration may help ripples participate in the rapidly growing financial infrastructure landscape.
Feature images created with DALL-E, TradingView’s chart
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