CryptoCurrency

Ripple USD Just Got Approved In Dubai—Here’s Why It Matters

Summary:

Ripple’s dollar-backed stablecoin RLUSD has been approved as a “Recognised Crypto Token” by the Dubai Financial Services Authority (DFSA), marking a significant milestone for digital asset adoption in the UAE. This designation allows RLUSD to operate within the Dubai International Financial Centre (DIFC), making it the first fully-reserved USD stablecoin approved under the DFSA’s stringent regulatory framework. The approval strengthens Ripple’s position in global payments and institutional blockchain adoption, particularly in cross-border transactions. With RLUSD now integrated into Ripple Payments, financial institutions in the DIFC can leverage faster, compliant dollar settlements alongside XRP.

What This Means for You:

  • Institutional Investors: RLUSD’s DFSA approval provides a regulated, transparent stablecoin option for treasury management and cross-border payments in the UAE.
  • Fintechs & Banks: Access to RLUSD via Ripple Payments enables 24-hour settlements across 90+ corridors, reducing friction in international transactions.
  • Crypto Traders: Increased adoption of RLUSD in Dubai could enhance liquidity and trading pairs on UAE-based exchanges.
  • Future Outlook: Expect further integration of RLUSD in Middle Eastern markets, particularly in real estate tokenization and trade finance.

Ripple USD Just Got Approved In Dubai—Here’s Why It Matters:

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Ripple’s dollar-backed stablecoin RLUSD today secured the status of a “Recognised Crypto Token” from the Dubai Financial Services Authority, clearing it for use inside the Dubai International Financial Centre. The designation, announced only six months after RLUSD’s launch under a New York Department of Financial Services (NYDFS) trust-company charter, makes RLUSD the first fully-reserved US-dollar stablecoin admitted to the DFSA regime and extends Ripple’s regulated footprint into one of the world’s fastest-growing digital-asset hubs.

Ripple Expands In UAE With RLUSD Approval

The DFSA’s recognised-token list, introduced in late 2022 with bitcoin, ether and litecoin, was expanded two years ago to include Toncoin and XRP. RLUSD now joins that small cohort, underscoring the regulator’s policy of adding tokens only after a rigorous due-diligence process that examines reserve composition, governance and consumer-protection measures.

Issued by Ripple Markets NY-DFS LLC, RLUSD is backed one-for-one by short-dated US Treasuries, cash and cash equivalents held in segregated accounts, with monthly attestation reports and the right of same-day fiat redemption. Those safeguards replicate the standards required by New York’s trust-charter regime—still regarded by many compliance officers as the most demanding in the stablecoin sector.

“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,” said Jack McDonald, Ripple’s senior vice-president for stablecoins. He added that the token “is uniquely positioned to drive institutional use of blockchain technology across global markets, starting with cross-border payments.”

Recognition allows Ripple to plug RLUSD directly into its DFSA-licensed Ripple Payments platform, giving banks and fintechs a dollar-settlement option alongside XRP for on-chain transfers. Two inaugural DIFC clients—Zand Bank, the UAE’s first all-digital bank, and fintech firm Mamo—have already gone live on the service, which offers 24-hour settlement into more than 90 payout corridors.

The green light also opens RLUSD to other DFSA-regulated virtual-asset firms inside the centre’s 7000-strong financial ecosystem. Reece Merrick, Ripple’s managing director for the Middle East and Africa, described demand as “huge,” citing corporate treasury desks, exchanges and custody providers that require a compliant on-chain dollar. “The UAE’s digital economy is vibrant and incredibly dynamic, and we’re looking forward to working with our regional partners, customers and regulators to supercharge that growth,” he said.

Stablecoin usage in the Emirates has been climbing sharply. Chainalysis estimates that dollar-pegged tokens accounted for more than half of all crypto flows into UAE-based services in 2024, with the value of stablecoin transactions rising 55 percent year-on-year to roughly $9.8 billion. Those figures outpaced both bitcoin and ether volumes and reflect the country’s $400 billion-plus trade footprint and its appetite for faster settlement rails.

By adding RLUSD to the recognised-token roster, the DFSA strengthens Dubai’s pitch as a jurisdiction where global trade businesses can settle in tokenized dollars without regulatory ambiguity. The move also dovetails with the emirate’s high-profile experiments on the XRP Ledger: last week the Dubai Land Department and tokenization firm Ctrl Alt began pilot transfers of property title deeds on the network as part of a planned $16 billion real-estate fractionalisation initiative.

At press time, XRP traded at $2.22.

XRP price
XRP price, 1-day chart | Source: XRPUSDT on TradingView.com

Featured image created with DALL.E, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Extra Information:

DFSA Official Site – Details on Dubai’s crypto regulatory framework.
Ripple’s RLUSD Page – Technical and compliance specifications for the stablecoin.
Chainalysis UAE Report – Data on stablecoin adoption trends in the region.

People Also Ask About:

  • Is RLUSD available for retail investors? Yes, but its primary use case is institutional cross-border payments.
  • How does RLUSD differ from USDT or USDC? It adheres to NYDFS and DFSA reserve standards, with stricter transparency requirements.
  • Will RLUSD launch in other GCC countries? Ripple has hinted at expansions into Saudi Arabia and Bahrain following UAE adoption.
  • Can RLUSD be used for Dubai real estate transactions? Yes, especially with the XRP Ledger’s tokenization pilots underway.

Expert Opinion:

“RLUSD’s DFSA approval signals a maturation of stablecoin regulation in the Middle East, merging New York’s compliance rigor with Dubai’s innovation-friendly policies. This dual-regulated model could become the gold standard for institutional crypto adoption, particularly in trade finance and remittances,” says Dr. Amina Al-Zarouni, a Dubai-based blockchain regulatory advisor.

Key Terms:

  • DFSA Recognised Crypto Token
  • Ripple RLUSD stablecoin compliance
  • Institutional stablecoin adoption UAE
  • Cross-border payments with RLUSD
  • XRP Ledger real estate tokenization
  • NYDFS vs. DFSA stablecoin regulations



ORIGINAL SOURCE:

Source link

Search the Web