Ripple Doubles Down on Dubai: RLUSD Stablecoin Gets Green Light in Middle East Push
Ripple's RLUSD just scored regulatory approval in Dubai—another chess move in its Middle Eastern expansion. The stablecoin now has a sandbox to play in, while traditional finance scrambles to keep up.
Why it matters: Dubai's crypto-friendly stance makes it a launchpad for Ripple's regional ambitions. Meanwhile, Wall Street still can't decide if blockchain is a threat or a buzzword.
Bottom line: While banks debate blockchain over martinis, Ripple's cutting through red tape like a hot knife through butter. Guess which approach moves faster?
Institutional Demand and Strategic Partnerships Fuel Growth
Ripple’s MOVE into the DIFC follows a broader trend of increased institutional interest in digital assets across the Gulf region. According to Reece Merrick, Managing Director for the Middle East and Africa, the company has observed rising demand for crypto-enabled payment and custody solutions.
The RLUSD approval is seen as a step toward enabling this demand through licensed, regulated infrastructure. Jack McDonald, Ripple’s Senior Vice President for stablecoins, said that the DFSA’s decision aligns with the company’s focus on supporting regulated financial innovation in Dubai.
To build out its local ecosystem, Ripple is actively working with various regional entities. It has formed partnerships with Zand, a digital bank based in the UAE, and Mamo, a fintech company.
These organizations are expected to be among the early adopters of Ripple’s payment tools powered by RLUSD. Furthermore, Ripple is engaging with Ctrl Alt, a digital infrastructure firm, and the Dubai Land Department in an initiative to tokenize real estate deeds on the XRP Ledger, aimed at creating digitized property ownership frameworks backed by blockchain.
RLUSD Expands Beyond the US Market
Launched in December 2024, RLUSD is fully backed by US dollar reserves and was initially approved by the New York Department of Financial Services. The stablecoin began trading on platforms such as Uphold and has since expanded to other exchanges, including Kraken.
RLUSD currently holds a market capitalization of over $300 million, placing it within a global stablecoin market that is dominated by larger players like Tether’s USDT and Circle’s USDC, which together account for the majority of the sector’s $250 billion total market value.
The integration of RLUSD into Dubai’s financial landscape could present Ripple with new use cases beyond its original remittance-focused model. The DIFC has positioned itself as a forward-looking regulatory hub for fintech and digital assets, providing a controlled environment for blockchain-based innovation.
With this approval, Ripple joins other companies leveraging the region’s legal clarity to offer services tied to digital currencies. As stablecoins gain traction globally for settlement and treasury use, regulated regional integrations such as this could help Ripple compete in a rapidly evolving financial infrastructure landscape.
Featured image created with DALL-E, Chart from TradingView
