Dubai says 'yes'
The stablecoin Ripple, named RLUSD, has been recognized by the Dubai Financial Services Authority (DFSA) as a cryptocurrency token in the Dubai International Financial Centre (DIFC).
"This approval strengthens RLUSD's position as a reliable corporate-level stablecoin, based on regulatory compliance, utility, and transparency," Ripple emphasized in its official statement.
Jack McDonald, Senior Vice President of Stablecoins at the company, described the approval as proof of the firm's commitment to 'creating a stablecoin that meets the highest standards of trust, transparency, and utility.'
"With a regulation-focused design and corporate-level features, RLUSD is uniquely positioned to drive institutional use of blockchain technology in global markets, starting with cross-border payments," he added.
The green light from Dubai allows other organizations licensed by the DFSA in the DIFC zone to incorporate the product into their operations.
The Dubai International Financial Centre (DIFC) is a special economic zone that serves as a financial hub for the Middle East, Africa, and South Asia (MEASA). It operates under its own legal framework and courts, and businesses in the zone benefit from a 0% corporate tax rate on relevant income and no restrictions on capital repatriation.
In August of last year, Ripple enhanced its global presence by partnering with the DIFC. A few months later, it received in-principle approval from the Dubai regulator to expand its services in the special economic zone.
Previous achievements of RLUSD
The stablecoin, pegged to the US dollar at a 1:1 ratio, officially launched in December of last year. Initially, exchanges that allowed trading services with it included Uphold, Bitso, Moonpay, Bitstamp, and others.
Later, well-known names like Gemini and Kraken also followed suit. As CryptoPotato reported last week, the latest to join this movement was Bitget, which listed RLUSD/USDT and RLUSD/USDC pairs.
Despite this, Ripple's financial product remains a minor player in the stablecoin niche with a market capitalization of about $310 million. This accounts for only 0.12% of the industry's capitalization of $250 billion.
It is important to note that Ripple reportedly attempted to increase its presence in the stablecoin sector by acquiring Circle (the company behind USDC). Several reports indicated that the company was willing to pay over $10 billion to close the deal.
However, Circle rejected these assumptions, stating that it is not for sale. It also plans to go public through an IPO in the United States.
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