Ripple’s dollar – pegged stablecoin RLUSD has recently been officially approved by the Dubai Financial Services Authority (DFSA) to be used within the Dubai International Financial Centre (DIFC). This marks a significant milestone for Ripple in the Middle East.
The approval allows RLUSD to be seamlessly integrated into Ripple’s regulated payment platform and made available to other institutions registered with the DFSA. Ripple stated that this achievement will further strengthen its digital asset position in the UAE and the entire Middle East. As financial institutions in the region actively embrace new technologies, the pace of development in this area is accelerating.
The DFSA’s approval of RLUSD is based on certain standards, requiring the token to be supported by highly liquid US – dollar – denominated assets at a 1:1 ratio and subject to third – party audit and supervision. These requirements emerged in the wake of events such as the FTX bankruptcy and the scrutiny of Binance – affiliated Paxos stablecoin BUSD, which raised concerns about institutional risks and the potential threats posed by undercapitalized cryptocurrency companies.
Moreover, RLUSD is expected to support the Dubai Land Department’s blockchain initiative to tokenize real – estate title deeds on the XRP ledger. Ripple is also working with several local partners, including digital bank Zand and fintech platform Mamo, which are expected to be early adopters of the company’s regulated payment services.
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