Ripple, the organization behind the cryptocurrency XRP, has initiated cross-border blockchain payment services in the United Arab Emirates (UAE), a move that could enhance cryptocurrency usage in a nation open to digital currencies.
According to a Ripple announcement on May 19, Zand Bank, the UAE’s first entirely digital bank, and Mamo, a fintech firm providing a digital payment solution for businesses, will be the main users of this new blockchain payments system.
Zand Bank and Mamo will utilize “Ripple Payments” to carry out cross-border blockchain transactions.
Ripple Payments is a platform that integrates stablecoins, cryptocurrencies, and traditional money, allowing for rapid payments and settlement – a capability that traditional cross-border finance often lacks. In March, Ripple received authorization from the Dubai Financial Services Authority (DFSA) to provide cryptocurrency payment services.
Reece Merrick, Ripple’s managing director for the Middle East and Africa, noted that obtaining this license “allows Ripple to better address the demand for solutions to the inefficiencies associated with traditional cross-border payments, such as excessive fees, extended settlement durations, and a lack of transparency, particularly in one of the largest hubs for cross-border transactions globally.”
UAE Positioned 56th in Global Crypto Adoption
According to a 2024 report by Chainalysis, the UAE was ranked 56th among 151 nations in terms of cryptocurrency adoption. The nation received high scores in decentralized finance, stablecoin utilization, and altcoin prevalence.
The UAE is undergoing various adjustments that could boost its ranking. Several emirates, including Dubai and Abu Dhabi, are striving to establish themselves as leaders in the cryptocurrency sector.
In December 2024, Tether’s USDt was recognized as an acceptable virtual asset in Abu Dhabi. The following year, Circle’s USDC and EURC became the first stablecoins acknowledged under the emirate’s crypto token regulations.
Additionally, the UAE is advancing plans to introduce a digital dirham, which would function as a central bank digital currency.
On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) announced tighter regulations concerning crypto asset operations, particularly in relation to margin trading and token distribution. There will be a 30-day transition window for compliance, with affected businesses required to adhere to the new guidelines by June 19.