TLDR
- Ripple has received a DFSA license to operate in Dubai’s financial center (DIFC), marking its first license in the Middle East
- The license enables Ripple to offer its blockchain-based cross-border payment services in the UAE’s $400 billion+ market
- Ripple has maintained its Middle East headquarters in Dubai since 2020, with 20% of its global customers in the region
- The SEC case against Ripple regarding XRP’s classification appears to be moving toward conclusion
- Ripple’s RLUSD stablecoin has grown to over $130 million in market capitalization since December
Ripple, the blockchain payments company behind XRP, has secured a license from the Dubai Financial Services Authority (DFSA) to offer its crypto payment services in the United Arab Emirates. The license, announced on March 13, 2025, allows Ripple to operate within the Dubai International Financial Centre (DIFC).
This marks Ripple’s first license in the Middle East region. The company will now be able to provide its cross-border payment solutions in Dubai, which serves as a global hub for international trade.
The UAE represents a major opportunity for Ripple. The country’s global trade sector is worth over $400 billion. This makes it an ideal market for blockchain-based payment systems.
Ripple has actually maintained a presence in the UAE since 2020. The company established its Middle East headquarters in the DIFC that year. However, until now, Ripple has not been able to offer its payment solutions directly in the Dubai market.
20% of customers are based in the Middle East
The company reports that around 20% of its global customers are already based in the Middle East. This new license will help Ripple serve these existing clients better while also expanding its reach in the region.
Reece Merrick, Ripple’s managing director for the Middle East and Africa, highlighted the importance of this development. “Securing this DFSA license 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,” he said.
The DFSA introduced its Crypto Token Regulatory Framework in October 2021. This framework was created to establish clear regulations for digital assets and blockchain businesses operating within the DIFC.
DIFC Authority CEO His Excellency Arif Amiri welcomed Ripple’s expansion. He stated that Dubai remains committed to supporting blockchain innovation. The approval makes Ripple the first blockchain-powered payments company to be licensed by the DFSA.
According to Ripple, 64% of finance leaders in the Middle East and Africa see faster payments as the biggest advantage of blockchain adoption. The company’s RippleNet product uses XRP for cross-border transactions, aiming to make global money transfers more efficient.
The UAE has positioned itself as a crypto-friendly jurisdiction. Dubai in particular has led efforts to foster blockchain adoption through forward-thinking regulations. The city has actively been attracting major blockchain firms and fintech companies as part of its vision to become a global Web3 and crypto capital.
Cheaper cross-border transactions
Ripple’s entry into the market could bring several benefits to Dubai’s crypto ecosystem. Financial institutions and businesses will now have access to faster and cheaper cross-border transactions. This could enhance Dubai’s position as a leader in fintech innovation.
The UAE is home to a large expatriate population that relies on remittance services. With Ripple’s technology, cross-border payments could become more efficient. This would reduce transaction costs and processing times for millions of migrant workers and businesses.
Following the news of the license approval, XRP’s price saw a modest increase of 3.24%. The cryptocurrency was trading at $2.23, reaching an intraday high of $2.26. This coincided with a broader market stabilization, with Bitcoin also seeing a 3% increase to trade at $83,500.
Ripple has been expanding its global presence. As of March 13, the company has secured more than 60 international licenses. These include approvals in Singapore, Ireland, and several U.S. states.
The company has also been focusing on stablecoins. Ripple launched RLUSD, which has grown to over $130 million in market capitalization since December. The availability of RLUSD could boost stablecoin transactions in the UAE.
Ongoing legal battle with the SEC
While this license marks progress for Ripple, challenges remain. The company is still involved in a legal battle with the U.S. Securities and Exchange Commission (SEC). The case, ongoing since December 2020, centers on whether XRP should be classified as a security under U.S. law.
Recent reports suggest the SEC is moving closer to concluding its case against Ripple. The outcome of this case could have major implications for the company and for XRP.
Ripple also faces increasing competition in the blockchain payments space. Other players such as Stellar (XLM), SWIFT’s blockchain-based solutions, and emerging fintech startups are also competing for market dominance.
The Bank of England is currently testing Ripple’s Interledger Protocol for faster cross-border payments. Meanwhile, in the US, interest in XRP ETFs is growing. Asset managers including Bitwise, Grayscale, Franklin Templeton, and 21Shares have filed for XRP ETFs and are awaiting SEC approval.
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