Ripple has received in-principle approval from the Dubai Financial Services Authority (DFSA) to deploy Ripple Payments Direct (RPD) in the UAE. The approval accelerates Ripple’s expansion into the Middle East, positioning its Dubai International Financial Center (DIFC) as a central hub for its growing global network, according to press release from October 1.
What the license means for Ripple
In principle, DFSA approval enables the blockchain company to expand its digital asset services as well as strengthen its enterprise-grade infrastructure in the UAE. This strategic move aims to capitalize on the growing demand for proficient, scalable cross-border payment systems that leverage blockchain technology for increased speed and reduced costs.
Brad Garlinghouse, CEO of Ripple, stated: “Blockchain technologies and cryptocurrencies are here to stay. With a forward-looking regulatory approach and clear guidance for creative businesses looking to invest and scale, the UAE is positioning itself as a global leader in the modern era of financial technology.
Ripple’s modern license means it is the first blockchain-enabled payment service provider to be fully recognized by the DFSA, the independent regulator of financial services operated 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 a regional headquarters in the emirate in 2020.
The strategic location of the UAE as a global financial services and trading center makes it an ideal location for Ripple. Regulatory clarity in the country and its position as a gateway to rapidly growing markets in the Middle East, Africa and South Asia played a key role in the company’s decision to deepen its investment in the region.
Salmaan Jaffery, Director of Business Development at DIFC, commented on the development: “At DIFC we are committed to supporting a forward-looking financial ecosystem that supports innovation and growth. Dubai’s strategic location and DIFC’s strong legal and regulatory framework, built on two decades of experience, make it an ideal hub for international companies looking to make a lasting impact. We proudly welcome Ripple’s continued expansion in DIFC as the company works to advance blockchain technology in the region.”
Globally, Ripple has a portfolio of over 55 licenses secured from leading financial regulators around the world, including the Monetary Authority of Singapore (MAS), Fresh York Department of Financial Services (NYDFS) and the Central Bank of Ireland (CBI).
Reece Merrick, managing director for the Middle East and Africa, highlighted the strategic importance of the UAE in Ripple’s global operations. “This is a pivotal moment for Ripple’s business in the Middle East. The DFSA is an internationally renowned independent regulator with a rigorous regulatory process and we are delighted to have received its approval in principle. More than 20% of Ripple’s global customer base is in the UAE, and as we expand our operations and services, we are meeting the growing demand for more efficient and cost-effective cross-border payment solutions,” Merrick said.
With the latest regulatory changes, Ripple continues its progress in the UAE. Just two months ago, Ripple Labs partnered with the DIFC Innovation Hub, part of the Dubai International Financial Center. The Hub is recognized as the largest innovation ecosystem in the region and is home to over 1,000 technology companies.
Last November, XRP was approved by the Dubai Financial Services Authority (DFSA) for apply at the Dubai International Financial Center (DIFC). This allowed licensed virtual asset companies under the DIFC to include XRP in their virtual asset services.
At press time, the price of XRP was $0.62
Featured image from Shutterstock, chart from TradingView.com
