Ripple gains regulatory approval to tap UAE’s $40 billion cross-border payments market

Ripple announced Thursday that it has received regulatory approval to provide crypto payments and services in the Dubai International Finance Center (DIFC).

The company said it is the first blockchain payments provider licensed by the Dubai Financial Services Authority. This license is also Ripple’s first license in the Middle East.

“We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption,” said Ripple CEO Brad Garlinghouse in a statement.

Garlinghouse added that the United Arab Emirates is “exceptionally well-placed” to benefit from this period of growth as it has taken early steps to establish a supportive environment for crypto innovation.

Citing data from World Bank, Ripple said the UAE owns a $40 billion cross-border payments market, from which it has seen demand for more efficient payment solutions. The need for instant settlements will also fuel stablecoin adoption in the region, Ripple said.

Last December, Ripple launched its U.S. dollar-pegged stablecoin RLUSD. The stablecoin currently holds a market capitalization of about $135 million.

“This latest regulatory approval positions Ripple to further accelerate growth and innovation in a high-potential market,” Ripple said in the Thursday statement.

According to the release, around 20% of Ripple’s global customer base operates in the Middle East, after it established its regional headquarters in the DIFC in 2020.