Crypto payments outfit Ripple secures key Dubai licence

Ripple has received approval from the Dubai Financial Services Authority (DFSA) to provide regulated crypto payments and services in the Dubai International Financial Centre (DIFC).

The entity, a leader in enterprise blockchain and crypto solutions, will be the first blockchain-enabled payments provider licenced by the DFSA.

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The development marks Ripple’s first licence in the Middle East and underscores the company’s long-standing commitment to the region and regulatory compliance globally.

How will the licence benefit Ripple?

The licence will now make Ripple’s seamless compliance-first global payments product available to businesses in the UAE. It will also reinforce Ripple’s role as a trusted partner for financial institutions looking to leverage the superior capabilities of digital assets to drive real-world utility.

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

Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit, Garlinghouse added.

Ripple’s DFSA licence adds to its growing list of over 60 regulatory approvals worldwide, including a Major Payments Institution licence from the Monetary Authority of Singapore (MAS), a New York Department of Financial Services (NYDFS) Trust Charter, a Virtual Asset Service Provider (VASP) registration from the Central Bank of Ireland, and Money Transmitter Licences (MTLs) across multiple US states.

What do crypto-native firms and traditional financial institutions demand?

The UAE is a global hub for outbound finance, with a market worth over $400bn for international trade. Most of the crypto-native firms and traditional financial institutions have been found to be seeking solutions to the inefficiencies of traditional cross-border payments—such as high fees, long settlement times, and lack of transparency.

A 2024 business survey carried out by Ripple revealed that 64 per cent of finance leaders in the Middle East and Africa (MEA) see faster payments and settlement times as the biggest value proposition for incorporating blockchain-based currencies into their cross-border payments business.

Payments utility is also expected to drive greater stablecoin adoption in the UAE. Stablecoins tend to offer real-time settlement compared to traditional banking systems, which often take days to process.

Ripple’s own RLUSD stablecoin had surpassed $130m in market cap after being launched on global exchanges at the end of December.

“We are thrilled that Ripple is deepening its commitment to Dubai by securing a DFSA licence that makes it the first blockchain-enabled payments provider in DIFC. This milestone not only highlights our commitment to fostering innovation, but also opens the door for Ripple to tap into new growth opportunities across the region and beyond. As the Middle East, Africa and South Asia’s leading global financial centre, DIFC is proud to support forward-thinking companies like Ripple as they shape the future of finance and accelerate the adoption of blockchain technology in the payments industry,” Arif Amiri, Chief Executive Officer of DIFC Authority, commented on the development.

Ripple’s position in the region

Ripple has substantially cemented its position in the region since establishing its headquarters in DIFC in 2020. This regulatory approval has positioned Ripple as an entity to further accelerate growth and innovation in a high-potential market.

Around 20 per cent of Ripple’s global customer base is already operating in the Middle East.

MEA region: The crypto-adoption scenario

The MEA region has one of the highest levels of institutional readiness when it comes to crypto adoption, with over 82 per cent of MEA finance leaders stating they are “very or extremely confident” when it comes to integrating blockchain solutions into their business.

“Dubai and the broader UAE have established themselves as leaders in fostering a progressive and well-defined regulatory framework for digital assets,” said Reece Merrick, Ripple’s Managing Director for the Middle East and Africa.

“Securing this DFSA licence is a major milestone that will enable us to better serve the growing demand for faster, cheaper, and more transparent cross-border transactions in one of the world’s largest cross-border payments hubs. We’re grateful for the support of our partners at DIFC, and we’re ready to hit the ground running with a growing local team and strong customer pipeline,” Reece Merrick added.

Ripple’s securing of the DFSA licence has further strengthened its mission to bring the benefits of compliant blockchain technology to financial services companies and their customers globally.