Ripple’s RLUSD stablecoin has received regulatory approval for use within the Dubai International Financial Centre (DIFC).
The Dubai Financial Services Authority (DFSA) has authorized the digital asset, allowing Ripple and other DFSA-licensed entities to operate with RLUSD in the DIFC. The stablecoin is fully backed 1:1 with US dollars and supported by high-quality liquid assets. Ripple emphasized its commitment to transparency through features such as segregated reserves, external audits, and defined redemption processes.
Stablecoin Designed for Institutional Adoption
RLUSD is intended for enterprise use and is not aimed at retail customers. Ripple’s Senior Vice President of Stablecoins, Jack McDonald, explained that the regulatory approval aligns with the company’s mission to offer a stablecoin based on trust, transparency, and practical use. He noted that RLUSD’s design prioritizes regulatory compliance and is structured to drive institutional blockchain applications, especially in cross-border payments.
Ripple believes that RLUSD will play a key role in addressing inefficiencies in global transactions, focusing on reducing cost, increasing speed, and improving reliability for enterprise users.
Integration with Ripple’s Payment Infrastructure
The DFSA’s approval allows Ripple to embed RLUSD directly into its licensed payment solutions. This integration will enable the stablecoin to function within Ripple’s global network, combining digital asset technology with compliance-driven financial tools. The design of RLUSD distinguishes it from exchange-based stablecoins by targeting businesses that require robust and consistent payment systems.
Ripple aims to improve the infrastructure of international transactions, using RLUSD to offer a more efficient alternative to traditional banking rails. This development gives Ripple a competitive edge in delivering secure and scalable payment solutions.
Expansion Across the DIFC and Regional Growth
RLUSD’s approval also permits its use by any other DFSA-regulated company within the DIFC. With nearly 7,000 businesses operating in the zone at the end of 2024, Ripple sees a large opportunity for adoption. The company reported a 55 percent increase in regional stablecoin activity over the past year. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted the growing importance of the area for crypto innovation.
Ripple has already confirmed early partnerships with Zand Bank and Mamo to implement RLUSD into their operations. In addition, Ripple has entered a new agreement with Ctrl Alt to assist the Dubai Land Department in launching a Real Estate Tokenization Project, which will place property title deeds directly onto the XRP Ledger.
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