Ripple has announced that its stablecoin, RLUSD, has received approval as a recognized crypto token by the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Centre (DIFC). This approval solidifies RLUSD’s reputation as a trusted, enterprise-grade stablecoin, emphasizing regulatory compliance, utility, and transparency.

RLUSD stands out as one of the few stablecoins globally issued under a New York Department of Financial Services (NYDFS) Trust Company Charter. It incorporates stringent safeguards, including a 1:1 USD backing by high-quality liquid assets, strict reserve management, asset segregation, third-party audits, and clear redemption rights. These features are tailored to meet the expectations of regulators and institutional users alike.

Jack McDonald, Senior Vice President of Stablecoins at Ripple, stated, “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.” He further emphasized that RLUSD is designed to enhance the enterprise utility of blockchain technology, particularly for cross-border payments.

RLUSD is uniquely designed for global enterprise utility, as opposed to stablecoins that primarily target retail users. The DFSA’s approval allows Ripple to integrate RLUSD into its DFSA-licensed flagship payments solution, which combines the stability of a trusted digital dollar with a scalable, blockchain-based infrastructure. This integration is expected to improve the speed, cost, and efficiency of cross-border payments.

Additionally, the approval allows other DFSA-licensed firms within the rapidly growing DIFC to incorporate RLUSD into their virtual asset services. With nearly 7,000 firms active by the end of 2024, this approval supports the integration of high-quality stablecoins into Dubai’s expanding digital assets and fintech ecosystem.

The adoption of stablecoins in the UAE is gaining momentum. Market data indicates that stablecoin transactions in the region increased by 55% year-on-year in 2024, reflecting a strong demand for blockchain solutions that address the inefficiencies of traditional payment systems. Given a market exceeding $400 billion for international trade and a progressive regulatory framework for digital assets, the UAE is well-positioned to emerge as a global hub for stablecoin innovation.

Reece Merrick, Managing Director for Middle East and Africa (MEA) at Ripple, commented, “The UAE continues to set a global benchmark for forward-thinking digital asset regulation and innovation.” He noted that the DFSA’s approval of RLUSD marks significant progress for Ripple in the region, with growing interest from businesses of all sizes in cross-border payments and digital asset custody solutions.

The recognition of RLUSD by the DFSA continues Ripple’s positive trajectory in the region. Recently, Ripple announced Zand Bank and Mamo as the first customers to adopt its regulated blockchain-enabled payments offering in the UAE. Additionally, Ripple is collaborating with Ctrl Alt to support the Dubai Land Department’s pioneering Real Estate Tokenization Project, which aims to tokenize real estate title deeds on the XRP Ledger.