Ripple Secures In-Principle Approval from Dubai Financial Services Authority

Ripple, a leading provider of digital asset infrastructure, has obtained in-principle approval from the Dubai Financial Services Authority (DFSA) to expand its services from the Dubai International Financial Centre (DIFC). This regulatory milestone, announced on October 1, 2024, marks a significant step in Ripple’s global expansion strategy and positions the company to introduce its cross-border payment services in the United Arab Emirates (UAE).

The approval will enable Ripple to offer its Ripple Payments Direct (RPD) service and other blockchain-enabled payment solutions to a broader customer base in the UAE. Upon full authorization, Ripple is set to become the first blockchain-enabled payment services provider licensed by the DFSA, the independent regulator of financial services conducted in or from the DIFC.

Brad Garlinghouse, Ripple’s Chief Executive Officer, commented on the approval: “Blockchain and crypto technologies are here to stay. 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.”

The move aligns with Ripple’s mission to provide businesses with faster, more cost-effective cross-border payment solutions. The company plans to combine regulatory compliance with ongoing investments in critical infrastructure components, including liquidity, custody, and fiat-to-digital asset on/off-ramps.

This development strengthens Ripple’s presence in the Middle East, following the establishment of its regional headquarters in Dubai in 2020. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, noted that over 20% of Ripple’s global customer base is already located in the UAE.

The UAE’s regulatory clarity and strategic position as a global financial services hub have been key factors in Ripple’s decision to expand in the region. Salmaan Jaffery, Chief Business Development Officer of the DIFC Authority, welcomed Ripple’s expansion, highlighting Dubai’s strategic location and the DIFC’s robust legal and regulatory framework as ideal for international businesses.

Ripple’s global compliance efforts are extensive, with the company holding over 55 licenses worldwide, including from authorities such as the Monetary Authority of Singapore and the New York Department of Financial Services. This approach reflects Ripple’s commitment to regulatory compliance in supporting blockchain adoption in financial services.

As part of its regional strategy, Ripple has also announced partnerships with the DIFC Innovation Hub and renewed its collaboration with NYU Abu Dhabi through the University Blockchain Research Initiative (UBRI). These initiatives aim to foster blockchain and digital asset innovation in the UAE and support local financial innovation.

The DFSA’s in-principle approval for Ripple underscores Dubai’s ambition to become a leading global crypto and fintech hub. As Ripple moves towards full authorization, the fintech industry will be watching closely to see how this expansion impacts the landscape of cross-border payments and blockchain adoption in the Middle East and beyond.