Dubai’s Financial Regulator Approves RLUSD Stablecoin

Ripple has received a significant regulatory boost as the Dubai Financial Services Authority (DFSA) approved the use of its RLUSD stablecoin within the Dubai International Financial Centre (DIFC). This development enables companies operating in the DIFC to utilise RLUSD for a range of virtual asset services, including payments, treasury operations, and custody solutions.

The DIFC, one of the region’s most prominent financial hubs, is a free economic zone that caters to businesses across the Middle East, Africa, and South Asia. By the end of 2024, it had nearly 7,000 registered businesses. Under the DIFC’s digital asset framework, only tokens formally recognised by the DFSA can be deployed within the district’s regulated ecosystem. With this approval, RLUSD joins a select group of stablecoins permitted in the zone.

RLUSD to Support Real Estate Tokenisation Initiative

The approval also paves the way for RLUSD’s use in government-backed blockchain projects. Ripple confirmed that the stablecoin will play a central role in the Dubai Land Department’s (DLD) real estate tokenisation initiative. The project, currently in its pilot phase, aims to digitise property title deeds and record them on the XRP Ledger.

Announced on 19 March, the DLD’s initiative seeks to act as a blockchain-based registration authority, applying tokenisation technology to improve transparency and efficiency in the real estate sector. By leveraging RLUSD for transactions, the initiative could significantly streamline the property transfer process, enabling secure and immutable recording of ownership on the blockchain.

Ripple Sees Strong Demand for Crypto in the UAE

Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted the growing appetite for digital asset solutions across the UAE. “The UAE’s digital economy is vibrant and incredibly dynamic,” Merrick stated. “We’re seeing huge interest from businesses of all sizes for cross-border payments and digital asset custody solutions.”

Ripple is collaborating with local firms such as digital bank Zand and fintech platform Mamo, who are expected to be among the first to adopt the company’s regulated payment services. The company views the region as a key growth area, with its supportive regulatory environment attracting global crypto businesses.

A Milestone in Ripple’s Global Expansion

The DFSA’s approval of RLUSD follows Ripple’s full licensing to operate within the DIFC, which was granted on 13 March. This marked another important milestone in the company’s broader global expansion strategy, particularly in jurisdictions with clear regulatory frameworks.

RLUSD now stands among a select few stablecoins globally that are approved under both the DFSA’s crypto token regime and the New York Department of Financial Services (NYDFS) Trust Company Charter. The latter granted its approval for RLUSD on 10 December 2024, making it one of the few stablecoins to achieve dual recognition from two major financial regulators.

DFSA Recognises Multiple Stablecoins

In addition to RLUSD, the DFSA has also approved the use of Circle-issued stablecoins USDC and EURC within the DIFC. These stablecoins, like RLUSD, are now recognised for use across various regulated financial services in the free economic zone, reflecting the DFSA’s evolving approach towards embracing compliant digital assets.

As regulatory clarity increases in jurisdictions like Dubai, companies such as Ripple are positioning themselves to offer a full suite of digital financial services. The RLUSD stablecoin’s integration into major projects, such as real estate tokenisation, illustrates the growing convergence of blockchain technology and traditional financial infrastructure.

With the approval of RLUSD, Ripple is poised to play a pivotal role in the transformation of the UAE’s digital economy, while setting a precedent for regulated crypto adoption in other global markets.