Ripple has been granted in-principle approval by the Dubai Financial Services Authority (DFSA) to deploy its Ripple Payments Direct (RPD) service across the United Arab Emirates. This approval accelerates Ripple’s push into the Middle East, positioning its Dubai International Financial Centre (DIFC) operations as a central hub for its expanding global network, according to a press release from October 1.
What The Licence Means For Ripple
The DFSA’s in-principle approval enables the blockchain company to extend its digital asset services and also solidify its enterprise-grade infrastructure within the UAE. This strategic move is designed to tap into the burgeoning demand for efficient, scalable cross-border payment systems that leverage blockchain technology for enhanced speed and reduced costs.
Brad Garlinghouse, CEO of Ripple, stated, “Blockchain and crypto technologies are here to stay. With its forward-thinking regulatory approach and clear guidance for innovative businesses seeking to invest and scale, the UAE is positioning itself as a global leader in this new era of financial technology.”
Ripple’s new license marks it as the first blockchain-enabled payment service provider to be fully recognized by the DFSA, the independent regulator of financial services conducted within or from the DIFC. Notably, this milestone is part of the company’s broader strategy to expand its footprint in the Middle East, which began with the establishment of its regional headquarters in the emirate in 2020.
The UAE’s strategic location as a global financial services and trade hub makes it an ideal location for Ripple. The nation’s regulatory clarity and its position as a gateway to fast-growing markets across the Middle East, Africa, and South Asia have been integral to the company’s decision to deepen its investment in the region.
Salmaan Jaffery, Chief Business Development Officer at the DIFC Authority, commented on the development, “At DIFC, we are committed to fostering a future-focused financial ecosystem that supports innovation and growth. Dubai’s strategic location and DIFC’s robust legal and regulatory framework, built on two decades of experience, makes this the ideal hub for international businesses looking to make a lasting impact. We are proud to welcome Ripple’s continued expansion in the DIFC as they work to drive the growth of blockchain technology in the region.”
Globally, Ripple maintains a portfolio of over 55 licenses, secured from top financial regulators worldwide, including the Monetary Authority of Singapore (MAS), the New York Department of Financial Services (NYDFS), and the Central Bank of Ireland (CBI).
Reece Merrick, Managing Director for the Middle East and Africa, underscored the strategic importance of the UAE in Ripple’s global operations. “This is a pivotal moment for Ripple’s operations in the Middle East. The DFSA is a globally renowned independent regulator with a rigorous regulatory process and we are delighted to have received their in-principle approval. Over 20% of Ripple’s global customer base is located in the UAE and as we continue to extend our operations and services, we are fulfilling the growing demand for more efficient and cost-effective cross-border payment solutions,” Merrick said.
With the latest regulatory advancement, Ripple is continuing its strides in the UAE. Just two months ago, Ripple Labs entered into a partnership with the DIFC Innovation Hub, part of the Dubai International Financial Centre. The hub is recognized as the largest innovation ecosystem in the region and home to over 1,000 tech firms.
In November last year, XRP was approved by the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Centre (DIFC). With this, licensed virtual asset firms within the DIFC were allowed to incorporate XRP into their virtual asset services.
At press time, XRP traded at $0.62
Featured image from Shutterstock, chart from TradingView.com
