Ripple has received in-principle approval from the Dubai Financial Services Authority (DFSA) to launch its Ripple Payments Direct (RPD) service throughout the United Arab Emirates. This endorsement marks a significant step in Ripple’s ambitions within the Middle East, enabling its operations in the Dubai International Financial Centre (DIFC) to serve as a key hub for the company’s growing global network, according to a press release dated October 1.
Significance of the Licence for Ripple
The DFSA’s approval allows the blockchain entity to broaden its digital asset services and strengthen its enterprise-grade infrastructure within the UAE. This strategic initiative aims to address the increasing demand for efficient, scalable cross-border payment solutions that utilize blockchain technology to improve speed and lower costs.
Ripple CEO Brad Garlinghouse remarked, “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.”
With this new license, Ripple becomes the first blockchain-based payment service provider to achieve full recognition from the DFSA, the independent body overseeing financial services within or from the DIFC. This milestone aligns with Ripple’s broader aim to enhance its presence in the Middle East, which began with the opening of its regional headquarters in the emirate in 2020.
The UAE’s advantageous geographic position as a global financial services and trade center renders it an optimal location for Ripple. The country’s regulatory clarity and its role as a gateway to rapidly growing markets across the Middle East, Africa, and South Asia have significantly influenced the company’s decision to increase its investment in the area.
Salmaan Jaffery, Chief Business Development Officer at the DIFC Authority, commented on the announcement, “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 holds a portfolio of more than 55 licenses from leading financial regulators, 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, emphasized the strategic role 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 stated.
Following this latest regulatory progression, Ripple continues to make significant moves in the UAE. Just two months prior, Ripple Labs entered into a partnership with the DIFC Innovation Hub, which is recognized as the largest innovation ecosystem in the region and home to more than 1,000 tech companies.
In November of the previous year, XRP was approved for use by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC). This approval permitted licensed virtual asset firms in the DIFC to incorporate XRP into their offerings.
At the time of this report, XRP was trading at $0.62.
Image Source: Paparacy / Shutterstock
