Ripple, a leading cryptocurrency and blockchain solutions provider, has received an in-principle licence from the Dubai Financial Services Authority (DFSA) to operate as a payment services provider. This milestone marks the company’s first major regulatory approval in the region and opens the door for Ripple’s broader expansion across the Gulf Cooperation Council (GCC) states.
The San Francisco-based company is the first blockchain-enabled payments provider to achieve this status from the DFSA, the regulatory body overseeing financial services within the Dubai International Financial Centre (DIFC). Ripple’s partnerships with key institutions in the UAE, including the DIFC and New York University Abu Dhabi, underscore its growing presence in the region.
“While our focus remains on the DIFC and the ecosystem of businesses it serves, we continue to evaluate opportunities across the GCC region and are in positive discussions with other jurisdictions to expand our footprint,” Reece Merrick, Ripple’s managing director for the Middle East and Africa, told The National. He emphasized that regulatory compliance would be a cornerstone of the company’s expansion strategy, particularly as it seeks to promote blockchain adoption within the financial services sector.
Merrick believes that as blockchain technology enables more efficient cross-border payment frameworks, it will inspire confidence among banks and regulated entities. “The DFSA authorisation marks a positive step in advancing financial inclusion across the region,” he said. He also noted that Ripple aims to address ongoing challenges in international payments, such as high fees, long processing times, and limited transparency.
In addition to payment services, Ripple will offer cryptocurrency custody services—providing secure storage solutions for digital assets. This service is especially critical for institutional investors holding large amounts of cryptocurrency. “Custody is a key facet of the infrastructure required for enterprise crypto services, and one of the critical components to any crypto experience, making it a significant business opportunity,” Merrick explained.
Ripple’s growing presence in the Middle East reflects the region’s increasing embrace of blockchain technology. According to Merrick, Middle Eastern users account for a fifth of Ripple’s global customer base. Ripple’s core offerings are built on the XRP Ledger (XRPL), using its native cryptocurrency, XRP, to facilitate cross-border payments. XRP, currently the seventh-largest cryptocurrency by market capitalization, holds a value exceeding $35 billion, according to CoinMarketCap.
Globally, Ripple’s payment services have processed approximately 27 million transactions worth $50 billion, with its payout capabilities spanning more than 80 markets. The company boasts over 55 regulatory licences worldwide, including from the Monetary Authority of Singapore, the New York Department of Financial Services, and the Central Bank of Ireland.
The UAE, which aims to establish itself as a global hub for cryptocurrency and blockchain technology, continues to attract major players in the digital asset space. Chainalysis data revealed that UAE investors gained $204 million from cryptocurrency investments in 2023. In line with its ambitions, Dubai introduced a law in March 2022 to regulate virtual assets and created the Virtual Assets Regulatory Authority (VARA) to enforce international standards in the sector.
As part of these efforts, several major digital asset companies have established operations in Dubai. In August, Tether, the world’s largest stablecoin, announced plans to launch a dirham-pegged stablecoin in the UAE. Earlier this year, Crypto.com’s Dubai-based subsidiary also secured a full operational licence from VARA.
Salmaan Jaffery, chief business development officer of the DIFC Authority, expressed support for Ripple’s expansion, stating, “We are committed to fostering a future-focused financial ecosystem that supports innovation and growth.” Ripple’s growing role in the UAE is expected to play a critical part in shaping the region’s burgeoning cryptocurrency and blockchain landscape.
