Digital asset XRP has been granted approval by the Dubai Financial Services Authority (DFSA) for utilization within the Dubai International Financial Centre (DIFC), marking a significant endorsement for cryptocurrency usage in financial services in Dubai, according to Ripple.
As the first virtual asset sanctioned by the DFSA following its call for external applications, XRP will join Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), which were previously approved under the DFSA’s virtual assets framework.
This development places XRP in a strategic position to offer legal and regulatory transparency within the DIFC, providing institutions there with the opportunity to harness the cryptocurrency for quicker and more efficient global transactions.
The United Arab Emirates (UAE) has rapidly emerged as a forward-thinking jurisdiction that fosters regulatory clarity and direction for licensed entities to engage in virtual asset services.
The DFSA has established a comprehensive framework for the DIFC, underscoring its dedication to the growth of the crypto, payments, and fintech ecosystem within Dubai. This structure also aims to provide companies with the guidance necessary to establish operations within the free zone.
The addition of XRP is a testament to Dubai’s commitment to becoming a premier financial hub, encouraging foreign investment and economic expansion, according to the announcement.
Brad Garlinghouse, the CEO of Ripple, commended Dubai’s regulatory leadership and proactive approach to the adoption and use of digital assets like XRP, highlighting Ripple’s plan to further expand its presence in the region. He anticipates a continued partnership with local regulators to maximize the potential of cryptocurrency.
Dubai’s embrace of XRP could potentially open up new avenues for regional payments and other applications using the XRP Ledger. Ripple, a major developer and user of the XRP Ledger, had previously established its MENA headquarters in the DIFC in 2020, influenced by Dubai’s innovative regulatory landscape and its status as a global financial nexus.
Currently, around 20% of Ripple’s clientele is based in the MENA region.
The announcement precedes Ripple Swell, the company’s flagship conference scheduled for November 8-9 in Dubai, which will gather key figures from the financial and regulatory sectors. The event will feature discussions from the DIFC’s Chief Operating Officer Alya Al Zarouni, VARA’s CEO Hensen Orser, and other prominent leaders in finance, fintech, and crypto.