Ripple's RLUSD Stablecoin Approved for Use in Dubai's DIFC

Ripple has announced that its stablecoin, RLUSD, has received approval from the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Centre (DIFC). This recognition allows Ripple’s stablecoin to be integrated into the DIFC’s regulated financial services, aligning with Ripple’s strategy to place stablecoins in clear regulatory jurisdictions. This move is particularly significant as it matches the UAE’s efforts to promote the use of digital assets. The decision reflects the growing engagement of regulators across the region with digital currency frameworks, aiming to support corporate blockchain transactions and cross-border transfers. This marks an important step in the development of digital finance in the region.

With DFSA approval, firms licensed by the DFSA can now use the RLUSD token within their virtual asset services. This integration places Ripple’s stablecoin into a licensed payment network in the DIFC, focusing on cross-border transfers using blockchain technology for greater speed and efficiency. Unlike many coins aimed at individuals, RLUSD is designed to support institutional clients only, aiming to boost efficiency and lower costs on global transfers. The stablecoin is backed by USD, with segregated assets and third-party audits ensuring security. It follows strict regulatory standards to build trust among corporate users.

The DIFC, which housed nearly 7,000 registered firms by December 2024, now provides access to RLUSD token services. This inclusion helps expand regulated digital finance options in the market, supporting efforts to grow blockchain-based services across the UAE. Regional firms can now explore new digital payment methods within a secure framework, demonstrating regulatory confidence in the digital asset frameworks regionally. This move aligns with national strategies promoting digital finance across various sectors.

The UAE has seen sharp growth in blockchain-based asset activity in recent years, with a 55% rise in stablecoin transactions nationwide. This trend highlights the demand for blockchain tools and bolsters crypto adoption in the country. The UAE handles over $400 billion in yearly international trade while supporting digital growth. Regulators have maintained national pro-digital laws to enhance financial technology use. RLUSD benefits from these policies, offering firms faster and cheaper payment methods tailored to enterprise needs rather than retail payment services.

Ripple leaders have noted that clear rules in the UAE guide their regional approach. Reece Merrick, Ripple’s MEA Managing Director, pointed to the ongoing digital transformation in the region, stressing that regulatory clarity supports financial innovation efforts. Jack McDonald, Senior Vice President of Stablecoins at Ripple, said that DFSA approval confirms their commitment to high trust and transparency standards. He added that a regulation-first design supports trust and meets high standards. Ripple plans to collaborate with local firms to drive growth in the digital economy, using the RLUSD token and its blockchain network for this purpose. These partnerships aim to bring new payment solutions to businesses, deepening Ripple’s presence in regional markets.

Prior to this approval, on May 19, Ripple received a DFSA license to launch cross-border payments. The service went live with Zand Bank and fintech firm Mamo as initial clients, enabling near-instant international transfers and reducing costs and processing delays. This platform addresses long-standing issues in traditional payment systems, boosting UAE crypto adoption in the enterprise payments sector. This launch marked a shift from slower transfers to blockchain-enabled solutions, offering more efficient options compared to legacy methods.

The start of Ripple’s aggressive expansion in the UAE can be traced back to March 13, when the DFSA granted Ripple a license to offer digital asset services in the DIFC. This made Ripple the first blockchain-based payments platform licensed by the DFSA, allowing it to provide regulated payment products to business clients. The inclusion of the RLUSD token in these services shows a deeper regional commitment. Ripple is integrating this into a long-term digital finance plan for growth, viewing these steps as foundational for future service expansions. The firm expects to build on these milestones to capture more market share.