KeyTakeaway:
- Ripple’s regulatory approval in Dubai allows it to offer fully regulated crypto payments in the UAE’s $40 billion remittance market.
- Ripple’s Middle East expansion addresses inefficiencies in payments, with 20% of its customer base in the region.
- Ripple’s XRP has seen price fluctuations but remains up 219% year-over-year, outperforming other major cryptocurrencies.
Ripple, the blockchain-based payments provider, has secured regulatory approval from the Dubai Financial Services Authority (DFSA), becoming the first company of its kind to be licensed in the Dubai International Financial Center (DIFC). This approval allows Ripple to provide fully regulated cross-border crypto payments in the United Arab Emirates (UAE), a country with a $40 billion remittance market.
Ripple’s Growing Footprint in the Middle East
This regulatory approval marks Ripple’s first in the Middle East. Ripple has been strengthening its presence in the region, establishing an office in Dubai’s special economic zone in 2020. Ripple now serves nearly 20% of its global customer base in the Middle East.
The company aims to address inefficiencies such as high fees, slow settlement times, and a lack of transparency in the region’s financial systems. A 2024 Ripple survey found that 64% of financial industry players in Africa and the Middle East believe blockchain-based currencies are crucial to improving payment speeds.
Ripple CEO Brad Garlinghouse emphasized the importance of regulatory clarity for the digital asset sector. He stated that regulatory transparency is key to accelerating growth in the industry. Ripple has now secured over 60 regulatory approvals globally, including from the Monetary Authority of Singapore (MAS), New York’s Department of Financial Services (NYDFS), and Ireland’s Central Bank.
XRP Market Reaction to UAE Approval
Following the announcement of Ripple’s UAE approval, XRP, the company’s native cryptocurrency, saw a 3% increase in its price, reaching $2.23. XRP’s price has fluctuated between $2.14 and $2.26 in the past 24 hours.
However, the token has experienced an 11.8% decline over the last week, underperforming the broader crypto market, which dropped 8.9%. Despite this, XRP has gained nearly 219% year-over-year, outperforming major cryptocurrencies like Ethereum (ETH), Solana (SOL), and Cardano (ADA).
Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) could soon reach a resolution. Legal experts believe a settlement between Ripple and the SEC may occur before the appellate brief filing deadline in April.
