Ripple’s RLUSD Stablecoin Gains Recognition in Dubai
Ripple’s dollar-backed stablecoin, RLUSD, has recently achieved the status of a “Recognised Crypto Token” from the Dubai Financial Services Authority (DFSA). This approval paves the way for its use within the Dubai International Financial Centre (DIFC). Announced just six months after its debut under the New York Department of Financial Services (NYDFS) trust-company charter, RLUSD is now the first fully-reserved US-dollar stablecoin included in the DFSA’s regulatory framework. This marks a significant expansion of Ripple’s regulatory influence into one of the most rapidly expanding digital asset hubs globally.
Ripple’s Expansion in the UAE with RLUSD Approval
The DFSA’s list of recognized tokens, initially introduced in late 2022 with major cryptocurrencies like Bitcoin, Ethereum, and Litecoin, was broadened two years ago to accommodate Toncoin and XRP. Now, RLUSD joins this exclusive group, highlighting the DFSA’s rigorous due-diligence process that assesses reserve composition, governance, and consumer protection measures before approving any token. RLUSD, issued by Ripple Markets NY-DFS LLC, is backed one-for-one by short-term US Treasuries, cash, and cash equivalents held in segregated accounts. Monthly attestation reports and the option for same-day fiat redemption further enhance its credibility and security, mirroring the high standards set by New York’s trust-charter regime, which continues to be regarded as one of the most stringent in the stablecoin industry.
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Jack McDonald, Ripple’s Senior Vice-President for Stablecoins, expressed, “The DFSA’s approval of RLUSD underscores our dedication to creating a stablecoin that embodies trust, transparency, and utility.” He further emphasized that RLUSD is “uniquely positioned to foster institutional adoption of blockchain technology across global markets, beginning with cross-border payments.”
Integration with Ripple Payments Platform
This recognition enables Ripple to integrate RLUSD directly into its DFSA-licensed Ripple Payments platform, offering banks and fintech companies a dollar-settlement option alongside XRP for on-chain transactions. Zand Bank, the UAE’s pioneering all-digital bank, and fintech enterprise Mamo have already adopted the service, which provides 24-hour settlement across more than 90 payment corridors. Furthermore, the approval opens RLUSD to other DFSA-regulated virtual asset firms within the DIFC’s extensive 7,000-strong financial ecosystem.
Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted the substantial demand, noting that corporate treasury desks, exchanges, and custody providers are actively seeking a compliant on-chain dollar option. “The UAE’s digital economy is both vibrant and dynamic, and we are eager to collaborate with our regional partners, customers, and regulators to accelerate this growth,” he stated.
Rising Stablecoin Adoption in the Emirates
Stablecoin adoption has been experiencing a significant surge in the Emirates. According to Chainalysis, dollar-pegged tokens constituted over half of all crypto inflows into UAE-based services in 2024. The value of stablecoin transactions increased by 55% year-on-year, reaching approximately $9.8 billion. These figures surpassed both Bitcoin and Ethereum volumes, reflecting the nation’s extensive $400 billion-plus trade network and its demand for faster settlement mechanisms.
By including RLUSD in its recognized-token roster, the DFSA enhances Dubai’s appeal as a jurisdiction where global trade entities can settle in tokenized dollars without regulatory uncertainty. This move aligns with the emirate’s prominent initiatives on the XRP Ledger. Recently, the Dubai Land Department and tokenization firm Ctrl Alt initiated pilot transfers of property title deeds on the network, as part of an ambitious $16 billion real estate fractionalization project.
At the time of writing, XRP is trading at $2.22.
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