Ripple’s stablecoin, RLUSD, has received official approval from the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Centre (DIFC). This announcement was made by Ripple on Tuesday, marking a significant step for the cryptocurrency in the region.

The DFSA’s approval allows RLUSD to be utilized by Ripple and other businesses that are licensed by the DFSA within Dubai’s financial free zone. Ripple states that RLUSD is backed 1:1 by US dollars and is supported by high-quality liquid assets, with segregated reserves, external audits, and clear redemption rights designed for users.

The stablecoin’s design aims to promote institutional use of blockchain technology in international markets, primarily focusing on enhancing cross-border payments. With this regulatory backing, Ripple can now integrate RLUSD into its DFSA-licensed payment solutions, combining blockchain infrastructure with a digital dollar that operates seamlessly across its global payout network.

Unlike other stablecoins that are intended for token swapping on exchanges, RLUSD is specifically developed for businesses seeking dependable transaction channels. It addresses the common speed, cost, and complexity challenges faced in traditional international payments.

The approval also applies to any DFSA-licensed company operating within the DIFC, allowing RLUSD to be used legally by other regulated firms. Ripple noted that the DIFC had nearly 7 000 companies by the end of 2024, indicating a substantial market for potential users of the stablecoin.

Additionally, Ripple reported a 55% year-over-year increase in stablecoin activity in the region in 2024. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted the region’s growing crypto activity, stating, “The DFSA’s approval of RLUSD is yet another step forward for Ripple’s operations in the region.”

Ripple is actively finalizing agreements to leverage its regulated infrastructure, with Zand Bank and Mamo confirmed as the first customers in the UAE to utilize Ripple’s blockchain-based payment services.

This announcement coincides with Ripple’s new partnership with Ctrl Alt to support the Dubai Land Department’s (DLD) Real Estate Tokenization Project. This initiative aims to integrate real estate title deeds directly onto the XRP Ledger, providing a government-backed approach to land ownership through blockchain technology.