The Dubai Financial Services Authority (DFSA) has officially accepted RLUSD, the stablecoin issued by Ripple, as a permissible cryptocurrency token within the Dubai International Financial Centre (DIFC). This approval grants RLUSD the right to be used in DFSA-licensed payment and digital services within the DIFC jurisdiction.
Issuance Terms and Investor Guarantees
RLUSD is issued with a 1:1 peg to the US dollar and is backed by high-quality liquid assets. The currency is launched under the New York Department of Financial Services (NYDFS) Trust Company Charter. RLUSD protocols ensure strict reserve controls, segregated fund storage, third-party audits, and transparent conditions for redemption.
Focus on Institutional Settlements
Unlike retail-focused stablecoins, RLUSD was initially developed as a corporate tool. According to Jack McDonald, Vice President of Stablecoins at Ripple, the project was designed from the outset to comply with regulatory standards and optimize cross-border payments. RLUSD combines stability with blockchain-based infrastructure and Ripple’s global settlement network.
Following its approval, RLUSD can be integrated not only into Ripple’s products but also into solutions developed by other DFSA-licensed companies. As of the end of 2024, approximately 7,000 companies were operating in the DIFC, and RLUSD recognition opens the door for them to utilize a regulated stable digital currency.
Stablecoins Gain Momentum in the UAE
According to Chainalysis data, the number of stablecoin transactions in the region grew by 55% in 2024 compared to the previous year. The UAE continues to show strong interest in technologies that reduce costs and accelerate cross-border settlements. With an annual foreign trade volume of $400 billion and supportive regulation, the country is solidifying its position as a global hub for digital asset adoption.
Ripple Strengthens Its Presence in the Middle East
Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, stated that demand for cross-border payment solutions and digital asset custody is on the rise. Ripple is already collaborating with Zand Bank and fintech company Mamo — the company’s first clients in the UAE using its new blockchain-based payment infrastructure.
Ripple is also working with Ctrl Alt on a project for the Dubai Land Department, focused on tokenizing property ownership rights using the XRP Ledger — another step toward integrating digital solutions into the UAE’s real economy.
Market Reaction
Despite the significance of the approval, Ripple’s native token XRP showed little reaction to the news. The token rose only 0,93% in the past 24 hours and declined 4,61% over the week. At the time of publication, XRP is trading at $2.19.
