The Dubai Financial Services Authority (DFSA), the financial regulator in charge of the Dubai International Financial Centre (DIFC), has officially approved Ripple’s RLUSD stablecoin as a recognized token under the regulator’s crypto regime.
Following the approval, DIFC companies can now use the RLUSD stablecoin for various virtual asset services. This may include payments, treasury management and services.
The DIFC is a free economic zone and financial district that serves companies throughout the Middle East, Africa and South Asia. The financial zone has nearly 7,000 registered businesses by the end of 2024.
Under the DIFC’s crypto framework, only tokens recognized by the DFSA may be used across the district’s regulated ecosystem.
Ripple sees “huge interest” from UAE businesses
Ripple said businesses in the UAE are growing increasingly interested in crypto solutions. “The UAE’s digital economy is vibrant and incredibly dynamic,” said Reece Merrick, Ripple’s managing director for the Middle East and Africa.
“We’re seeing huge interest from businesses of all sizes for cross-border payments and digital asset custody solutions,” Merrick added.
Ripple said it is working with several local partners, including digital bank Zand and fintech platform Mamo, which are expected to be early adopters of the company’s regulated payment services.
In addition, Ripple said RLUSD will support the Dubai Land Department’s real estate tokenization initiative. The company said the project will record title deeds on the XRP Ledger.
On March 19, the Dubai Land Department (DLD) announced that it had started the pilot phase of its real-estate tokenization project. The project aims to be a registration entity that implements blockchain-based tokenization on property title deeds.
Related: Dubai gov’t agencies to link real estate registry with property tokenization
Ripple expands global operations
The RLUSD stablecoin approval follows Ripple’s recent DFSA license approval. On March 13, the company announced that it received a full license to operate in the DIFC.
RLUSD is among the few stablecoins globally approved under the DFSA’s crypto token regime and the New York Department of Financial Services (NYDFS) Trust Company Charter. On Dec. 10, the NYDFS approved the stablecoin after months of consideration.
Apart from the RLUSD stablecoin, the DFSA has recognized Circle-issued stablecoins USDC (USDC) and EURC (EURC) and approved their use in the DIFC free economic zone.
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