Ripple Expands Into UAE With New DFSA Approval

Blockchain giant company, Ripple, has made headlines today after receiving in-principle approval from the Dubai Financial Services Authority (DFSA) to expand its services in the UAE region. The approval marks a significant milestone in Ripple’s effort to expand its operations globally.

Notably, the recent update comes amid growing speculations of a potential SEC appeal in the four-year-long legal battle between the two entities. Ripple took to social media to announce the achievement while expressing excitement about the future.

Ripple Gets Regulatory Approval

In a blog post on its official website, the California-based blockchain firm disclosed that the approval allows it to expand its service from the Dubai International Financial Centre (DIFC). Consequently, this has strengthened Ripple’s global footprint as a recognized and regulated company.

With this, Ripple can now introduce its cross-border payment services, including Ripple Payments Direct (RPD) in the region.

We’re delighted to have secured in-principle approval of a financial services license from Dubai Financial Services Authority, unlocking our end-to-end managed payments services in the UAE. 🌍🇦🇪https://t.co/4zq8YPlgaG

— Ripple (@Ripple) October 1, 2024

In a statement, the CEO of Ripple, Brad Garlinghouse, emphasized the growing adoption of cryptocurrencies and its underlying blockchain technology and how the UAE is gradually becoming a hub for financial technology.

“Blockchain and crypto technologies are here to stay, and with its forward-thinking regulatory approach and clear guidance for innovative businesses seeking to invest and scale, the UAE is positioning itself as a global leader in this new era of financial technology,” he said.

Interestingly, the new approval positions Ripple as the first and only provider of blockchain-enabled payment services in the region to be licensed by the authority.

What this Means for Ripple

As the first of its kind in the United Arab Emirates, Ripple is positioned to secure a big share of the growing market, servicing investors and firms looking for seamless payment solutions.

Ripple emphasized also that the regulatory clarity in the UAE and its initiative to position as a global financial services and trade hub are the key reasons the company has continued to do business in the Middle East.

Ripple has about 20% of its global users based in the UAE, and these users will now be able to enjoy instant low-cost cross-border transfers built on transparency and security.

With this global expansion, the XRP coin now has an extended use case as it will be exposed to a newer audience leveraging the native token to facilitate payments.

Meanwhile, the price of XRP spiked following the news. According to on-chain data, XRP jumped by 0.09% to trade at $0.6288.