Ripple Labs, a cryptocurrency company based in San Francisco, has announced its plans to expand operations in the UAE after receiving approval to operate from the Dubai Financial Services Authority (DFSA). The DFSA licensed Ripple in March, marking the company as the first blockchain payments provider to achieve this status in Dubai.

Currently, one in five of Ripple’s customers is located in the Middle East, and the company has maintained an office in Dubai since 2020. Ripple regards the Middle East as a crucial area for growth, particularly focusing on the UAE’s substantial remittance market, valued at $40 billion annually, along with its status as a trading hub.

Ripple is known for its protocol that facilitates fast and low-cost international money transfers. The company also created the XRP altcoin, which is utilized for transactions on Ripple’s blockchain network. With the DFSA licensing, Ripple is now able to offer fully regulated cross-border crypto payments in the UAE.

Ripple markets itself as a solution for businesses that engage in cross-border payments using digital assets, aiming to minimize fees and reduce settlement times. Last year, it launched a stablecoin that is pegged to a fiat currency, such as the US dollar, which has already reached over $130 million in market capitalization.

In a related announcement, earlier this month, former US President Donald Trump introduced a national cryptocurrency reserve that includes five digital currencies: bitcoin, ethereum, ripple (XRP), solana, and cardano. Ripple has established long-term partnerships with several financial institutions in the region, including the UAE’s Fujairah National Bank and Al-Ansari Exchange, as well as Saudi Arabia’s National Commercial Bank, which partnered with Ripple in March.