Ripple Secures DFSA Approval for Crypto Services in the UAE
In a significant development for the cryptocurrency landscape, Ripple announced on Thursday that it has officially received approval from the Dubai Financial Services Authority (DFSA) to operate as a regulated provider of crypto payments and services within the United Arab Emirates (UAE). This milestone positions Ripple as the first blockchain-enabled payments provider to be licensed by the DFSA.
Brad Garlinghouse, the Chief Executive Officer of Ripple, remarked in a press release, “We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption.” He went on to emphasize the UAE’s proactive approach in fostering a supportive environment for technological and crypto innovation, stating, “Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit.”
Ripple has reported a surge in demand from both crypto-native companies and traditional financial institutions across the Middle East. Notably, around 20% of Ripple’s global customer base is now engaged in operations within this burgeoning market. The anticipated utility of payments is expected to catalyze a rise in stablecoin adoption throughout the UAE, as stablecoins facilitate real-time settlements. This trend could further accelerate the growth of Ripple’s RLUSD stablecoin, which currently boasts a capitalization of approximately $134 million as of Thursday, reflecting an equivalent amount in USD backing.
With the DFSA license, Ripple adds to its impressive roster of over 60 regulatory approvals worldwide. This includes notable achievements such as a Major Payments Institution license from the Monetary Authority of Singapore (MAS), a Trust Charter from the New York Department of Financial Services (NYDFS), a Virtual Asset Service Provider (VASP) registration from the Central Bank of Ireland, and Money Transmitter Licenses (MTLs) across several states in the United States.
In related market news, XRP prices have risen nearly 4% over the past 24 hours, outpacing gains in Bitcoin (BTC). This uptick comes as reports suggest that the long-standing legal battle between Ripple and the SEC is nearing its final settlement stages, potentially leading to further positive momentum for the company and its offerings.
