Ripple has secured a significant regulatory milestone, as its stablecoin RLUSD gains official approval for use within Dubai’s prestigious financial free zone.
On June 3, Ripple announced via a press release that its U.S.-regulated stablecoin, RLUSD, is now officially approved by the Dubai Financial Services Authority (DFSA) for operations within the Dubai International Financial Centre (DIFC). This achievement positions RLUSD among a select class of stablecoins that have received endorsements from both the DFSA and New York’s Department of Financial Services, underscoring its global credibility.
RLUSD is engineered to maintain a 1:1 backing with segregated reserves and high-quality liquid assets. This stablecoin has undergone a series of stringent third-party audits, enhancing its appeal particularly among institutional users who prioritize stability and compliance in cross-border blockchain transactions. Its design and operational ethos cater specifically to enterprises seeking a secure financial vehicle for digital payments.
“The DFSA’s approval of RLUSD is proof of our commitment to building a stablecoin that meets the highest standards of trust, transparency, and utility.”
— Jack McDonald, Ripple’s Senior Vice President of Stablecoins
With the DFSA’s nod of approval, Ripple can now integrate RLUSD into its payment platform licensed by the DFSA. This platform utilizes the XRP Ledger, facilitating a global payout network that promises several advantages, including lower transaction costs, quicker settlement times, and enhanced regulatory clarity. These features make RLUSD particularly attractive in an evolving financial landscape.
The DIFC is a thriving hub, home to nearly 7,000 firms, and will support the integration of RLUSD across various licensed virtual asset services. Notably, the usage of stablecoins in the UAE has surged by 55% year-over-year in 2024, highlighting a growing institutional demand for blockchain-based payment mechanisms. The regulatory climate in the UAE appears to favor innovation, setting a global benchmark for digital asset regulations.
“The UAE continues to set a global benchmark for forward-thinking digital asset regulation and innovation,” remarked Reece Merrick, Ripple’s Managing Director for the Middle East and Africa. “We’re observing significant interest from businesses seeking solutions for cross-border payments and digital asset custody.” This sentiment reflects the broader push within the region to foster a regulatory environment conducive to innovation in financial technology.
The DFSA approval is merely a milestone in Ripple’s strategic expansion within the region. Recent partnerships with firms like Zand Bank and fintech company Mamo showcase how Ripple is actively leveraging its regulated payment infrastructure. Beyond payments, Ripple is collaborating with the Dubai Land Department and Ctrl Alt to introduce blockchain-based solutions for tokenizing property deeds on the XRP Ledger, further showcasing versatility and applicability across various sectors.
First introduced in December 2024, RLUSD is not just limited to the XRP Ledger; it is also available on Ethereum (ETH). Its utility has rapidly increased, with ambitious plans to integrate RLUSD into Cardano’s (ADA) decentralized finance ecosystem. Additionally, it aims to function as collateral on Hidden Road’s institutional platform, a major player that processes over $3 trillion annually—demonstrating RLUSD’s expanding role in the financial ecosystem.
