The Dubai Financial Services Authority (DFSA) approved Ripple's RLUSD token for use within the Dubai International Financial Centre (DIFC), making it the third stablecoin to receive regulatory approval under the DIFC's cryptocurrency regime.
The certification of RLUSD came after Ripple itself received approval (in March) to offer payment services via blockchain within the DIFC, becoming the first crypto-focused company to overcome this regulatory hurdle.
These two approvals mean that Ripple can integrate RLUSD into the global payment services it offers in Dubai and the United Arab Emirates, while other companies licensed by the DFSA in the region can also include the stablecoin in the solutions they offer to their clients.
Speaking to Decrypt, Reece Merrick, Managing Director of Ripple for the Middle East, predicts that, given the UAE's status as an international trade hub, stablecoins will be increasingly used to settle international payments in real-time, reducing friction and costs for local businesses.
"Today's DFSA approval also allows RLUSD to be used in digital asset services by other DFSA-licensed companies in the DIFC, playing an important role in increasing the utility of stablecoins in the rapidly growing blockchain ecosystem of the DIFC," he stated.
According to Merrick, the DIFC has shown annual productivity growth and benefits from progressive financial regulations, making it a conducive environment for the adoption of stablecoins.
"We believe there is a significant opportunity for RLUSD to add real value in payments, DeFi, and in facilitating the tokenization of real-world assets," he asserts.
Regarding Ripple's long-term plans for RLUSD, Merrick explains that the company aims to build "global reach and availability" for the stablecoin.
"It is already listed on dozens of the largest global exchanges and platforms, including Gemini, Kraken, Aave, MoonPay, Independent Reserve, BitMex, Banxa, Bitso, and others," he says. "RLUSD is available on the XRP Ledger and Ethereum blockchains, offering flexibility and scalability for a wide range of financial use cases."
And it's not just in Dubai that RLUSD has received regulatory approval: the New York Department of Financial Services granted the stablecoin a limited-purpose trust company license, subjecting it to New York banking rules.
"[New York has] one of the most rigorous regulatory frameworks in the world, and we will continue to work with regulators, partners, and clients to meet the strong demand for a differentiated stablecoin that brings legitimacy, trust, and genuine business utility," Merrick adds.
Ripple launched RLUSD in December, and since then it has become the 20th largest stablecoin in the market, with CoinGecko assigning it a market value of $333.6 million (Tether and USDC have values of $153.3 billion and $61.4 billion, respectively).
For Merrick and Ripple, its status as an efficient and strongly regulated stablecoin puts it in an ideal position for future growth.
"The stablecoin market has already surpassed $250 billion and continues to grow — and what will drive the next wave of adoption is utility," he states.
Still, Ripple believes that it will be its own status as one of the largest crypto companies that will catalyze the expansion of RLUSD in the coming months and years.
"With over a decade of experience, Ripple Payments uses digital assets, including stablecoins, to drive real-time settlements and efficient on-ramps and off-ramps at a scale and depth that few can match," says Merrick. "Currently, we serve over 90 payment markets covering more than 90% of global exchange, with over $70 billion processed to date."
This scale has allowed RLUSD to record over $10 billion in trading volume since its launch, which, according to Merrick, reflects an "unprecedented" adoption.
In comparison, Tether — still the largest stablecoin by far — recorded $41.7 billion in trading volume in just the last 24 hours, according to CoinGecko.