Ripple has received in-principle approval from the Dubai Financial Services Authority (DFSA), allowing it to expand its cross-border payment services in the UAE, including Ripple Payments Direct (RPD). This regulatory endorsement positions Ripple as a pioneer in the region, enhancing its enterprise-grade digital asset infrastructure for a broader customer base.
We’re delighted to have secured in-principle approval of a financial services license from Dubai Financial Services Authority, unlocking our end-to-end managed payments services in the UAE. 🌍🇦🇪https://t.co/4zq8YPlgaG
— Ripple (@Ripple) October 1, 2024
Brad Garlinghouse, Ripple’s CEO, emphasized that the UAE’s progressive regulatory framework allows innovation in financial technology, potentially establishing it as a global leader. The approval also aligns with emerging rumors that India and UAE may use XRP for oil trades, challenging the dominance of the US dollar in global oil transactions.
How will this approval impact Ripple’s market share in the UAE?
As the first blockchain-enabling payment service provider licensed by the DFSA, XRP is positioned to attract investors that are looking for cost-effective business payment solutions. The approval not only solidifies XRP’s hold in the UAE but also aligns with UAE’s mission and vision of becoming crypto and fintech hub.
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With 20% of XRP’s global customer based in the UAE, the users will have the benefits of enjoying instant low-cost international transfers, transparency and security offered during the transactions for smoother business operations, and development along with innovation opportunities in the sector.
This move will give rise to increased adoption of the blockchain technology, further expanding XRP’s influence and market reach within the UAE. Additionally, this move will also open doors for XRP to form new partnerships with local banks and fintech companies, further increasing adoption of XRP.
As Ripple continues to forge partnership and expand its influence in the Middle East, its impact on crypto adoption and cross-border payments could reshape financial ecosystems globally.
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