Ripple’s stablecoin, RLUSD, just got a big thumbs-up from the Dubai Financial Services Authority (DFSA). This means it’s officially approved for use in the Dubai International Financial Centre (DIFC).
What’s the Big Deal?
This is a significant win for Ripple. RLUSD is now the first fully-reserved US dollar stablecoin allowed in the DFSA’s system. It puts Ripple firmly on the map in one of the world’s fastest-growing digital asset hubs. The DFSA is known for its thorough vetting process, so this approval is a major vote of confidence.
How RLUSD Works
RLUSD is backed one-to-one by safe investments like short-term US Treasury bonds and cash. There are regular reports to ensure everything is above board, and users can easily convert it back to US dollars. This mirrors the strict rules in New York, where it’s already approved.
Ripple’s Expansion in the UAE
Ripple’s senior VP for stablecoins, Jack McDonald, says this approval shows their commitment to building a trustworthy and transparent stablecoin. He believes RLUSD will be especially useful for institutional investors using blockchain technology, particularly for cross-border payments.
RLUSD integrates directly with Ripple’s payment platform in Dubai. Banks and fintech companies can now use it for faster, 24/7 dollar settlements alongside XRP. Two companies are already using it: Zand Bank and Mamo.
Huge Demand and a Booming Market
Reece Merrick, Ripple’s Middle East and Africa head, says demand for RLUSD is “huge,” especially from businesses needing a compliant way to handle US dollars on the blockchain. The UAE’s digital economy is booming, and RLUSD is perfectly positioned to benefit from this growth.
Stablecoins are already incredibly popular in the UAE. Data shows they made up over half of all crypto flowing into the country in 2024, with transactions jumping 55% year-over-year to about $9.8 billion. This is even more than Bitcoin and Ether transactions.
Dubai’s Growing Crypto Scene
By approving RLUSD, Dubai is further solidifying its position as a crypto-friendly hub. Global businesses can now use tokenized dollars without worrying about confusing regulations. This also aligns with Dubai’s other crypto initiatives, like recent pilot programs using XRP for property transactions.
In short, RLUSD’s approval is a big deal for Ripple, Dubai, and the wider world of digital finance.
