Dubai Regulators Approve Ripple’s Stablecoin RLUSD

Ripple states that the approval enables RLUSD to be used within the Dubai authority’s payments network.

What to know:

• The decision allows RLUSD to be utilised on Ripple’s payment platform under the oversight of the Dubai agency. Ripple’s RLUSD stablecoin has gained regulatory approval from the Dubai Financial Services Authority (DFSA), enabling its use within the Dubai International Financial Centre (DIFC). 

• The regulatory approval paves the way for RLUSD to be integrated into Ripple’s authorised payments platform, with the added potential for adoption by other companies operating under DFSA registration.

• Although RLUSD has received regulatory clearance, it’s still uncertain how widely it will be adopted by businesses. Nonetheless, Ripple is steadily expanding its footprint in the UAE through strategic local partnerships.

Ripple’s US dollar peg RLUSD has acquired regulatory approval from Dubai’s financial authority, paving the path for its use in the Dubai International Financial Centre (DIFC), the company announced Tuesday.

The Dubai Financial Services Authority’s approval permits the integration of RLUSD into Ripple’s licensed payment infrastructure and paves the way for its potential adoption by other DFSA-registered firms.

That development might help Ripple increase its presence in the region’s rapidly growing digital asset ecosystem, where regulatory clarity has been a driving force behind adoption. 

“This approval reinforces RLUSD’s position as a stablecoin built with regulatory compliance and transparency at its core,” the company stated in a statement.

To address institutional worries regarding stablecoin reserves, RLUSD is 1:1 backed by US dollars and held in high-quality liquid assets. It is also subject to third-party audits. 

However, there are still issues concerning real-world acceptance. While RLUSD’s acceptance theoretically permits DFSA-regulated enterprises to use the token, it is unknown how many will incorporate the stablecoin into their operations. 

The permission comes as Ripple expands its presence in the UAE. Recent alliances include agreements with local banks and payment providers such as Zand Bank and Mamo, as well as collaboration with Ctrl Alt on a real estate tokenisation initiative for Dubai’s Land Department. Institutional stablecoin adoption has accelerated in the UAE, with Ripple reporting a 55% year-over-year rise in transactions. 

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