Ripple’s RLUSD Stablecoin Approval in Dubai Fuels XRP Price Surge

In a significant development for the cryptocurrency sector, Ripple’s stablecoin, RLUSD, has received approval from the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Centre (DIFC). This milestone highlights the UAE’s forward-thinking approach to digital assets, further cementing Dubai’s reputation as a global leader in blockchain innovation. As Western regulators continue to impose stricter crypto regulations, the UAE is taking a contrasting stance by embracing the industry. The approval of RLUSD has already had a positive impact on XRP’s market performance, with its price currently standing at 2.18560000 USDT. This move is expected to bolster investor confidence and drive further adoption of Ripple’s ecosystem in the region.

Ripple’s RLUSD Stablecoin Approved in Dubai, XRP Sees Price Uptick

Dubai’s financial regulator, the Dubai Financial Services Authority (DFSA), has granted approval to Ripple’s stablecoin, RLUSD, for use within the Dubai International Financial Centre (DIFC). This MOVE underscores the UAE’s progressive stance on digital assets, positioning Dubai as a hub for blockchain innovation.

While Western regulators tighten crypto restrictions, the UAE is embracing the sector. RLUSD’s approval reflects growing institutional demand for stablecoins in the region, with usage surging 55% year-over-year. "This isn’t just about another stablecoin getting approved. It’s a sign of where the market’s heading," said Ripple’s Jack McDonald.

XRP gained 2% following the news, trading at $2.20. The token’s rally aligns with broader momentum for Ripple’s ecosystem as the firm expands its Middle East presence.

XRP Faces Institutional Outflows Amid Market-Wide Inflows

XRP investment products recorded $28.2 million in outflows for the second consecutive week, contrasting sharply with the broader digital asset market’s $286 million inflows. The token hovers NEAR a critical support level at $2.20, reflecting waning institutional confidence despite a 1.6% daily gain.

Spot trading volume surged 24% to $2 billion, while derivatives activity ROSE 18% to $3.45 billion, signaling trader anticipation of volatility. Market-wide assets under management dipped to $177 billion from record highs as global macro uncertainty weighed on crypto valuations.

Ripple’s RLUSD Stablecoin Approved for Use in Dubai’s Financial Hub

Ripple has secured a significant regulatory milestone with the approval of its stablecoin RLUSD by the Dubai Financial Services Authority for use within the Dubai International Financial Centre. This marks RLUSD as one of the few stablecoins globally to receive dual approval from both the DFSA and the New York Department of Financial Services.

Backed 1:1 by segregated reserves and high-quality liquid assets, RLUSD is designed for enterprise use, offering institutional users a stable and compliant solution for cross-border blockchain-based payments. The stablecoin has undergone frequent third-party audits, reinforcing its transparency and reliability.

"The DFSA’s approval of RLUSD is proof of our commitment to building a stablecoin that meets the highest standards of trust, transparency, and utility," said Jack McDonald, Ripple’s Senior Vice President of Stablecoins.

With this approval, Ripple can now integrate RLUSD into its DFSA-licensed payments platform, leveraging the XRP Ledger to enhance global payout networks. The stablecoin promises lower payment costs, faster settlement times, and regulatory clarity, making it an attractive option for the nearly 7,000 firms operating within the DIFC.

Fact Check: Will Ripple Sell $10 Billion Worth of XRP to Buy Circle?

Ripple Labs is reportedly considering a $10 to $20 billion acquisition of Circle, sparking debate over funding strategies. With 40% of XRP’s supply in its treasury, Ripple could theoretically liquidate $10 billion worth of tokens—but market repercussions loom large. Crypto analyst Dave Weisberger warns such a move WOULD flood the market, asking "who would buy all that XRP?" while attorney Fred Rispoli counters that secondary market valuations suggest Ripple could avoid XRP sales entirely.

The discussion highlights the delicate balance between corporate strategy and tokenomics. XRP’s price stability faces existential questions if Ripple opts for large-scale divestment. Meanwhile, Circle’s stablecoin dominance presents strategic value for Ripple’s cross-border payment ambitions—if the deal structure avoids destabilizing crypto markets.