The Dubai International Finance Centre (DIFC) has given Ripple, a well-known blockchain-based payment company, in-principle approval to function as a blockchain-enabled payment service provider in the United Arab Emirates. With this license, Ripple will be allowed to launch its RLUSD stablecoin and other cryptocurrency payment and remittance services in the area.
The Powerful Presence of Ripple in the Middle East
With 20% of its global clientele based in the GCC and MENA areas, Ripple already has a sizable following in the Middle East. The company’s latest license clearance is regarded as a significant turning point for the expansion of Ripple as well as the wider regional adoption of stablecoins, crypto payments, and Central Bank Digital Currencies (CBDCs).
MENA: A Center for Innovation in FinTech
Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, emphasized the company’s extensive presence in the MENA area in an interview. Merrick underlined that the introduction of blockchain technology and cryptocurrencies has accelerated change in the Middle East, especially in the GCC. He said that the region is at the front of a global FinTech revolution, particularly in cross-border payments, thanks to progressive government policies and progressive regulatory frameworks.
The Leading Position of the UAE in Remittances
Since its launch, Ripple has made remittances a key component of its services. As the top Arab nation, the UAE is vital to the world’s remittance flows. The UAE enabled $38.5 billion in outbound remittances in the most recent year, placing it second internationally, only behind the US, according to the World Bank. The region has swiftly adopted payment technologies, with Saudi Arabia and the United Arab Emirates continuously ranking among the top remittance-sending nations.
The Expanding Crypto Market in MENA
Merrick said that, according to Chainalysis, the MENA area now has the seventh-largest cryptocurrency market in the world, with $338.7 billion in on-chain value transactions from July 2023 to June 2024. The market is dominated by professional and institutional transactions, with 93% of cryptocurrency transfers valued at $10,000 or more.
The Growing Clientele of Ripple in the Area
The MENA region now accounts for 20% of Ripple’s worldwide customer base, demonstrating the company’s significant growth in this area. In order to further solidify Ripple’s position in the region’s financial ecosystem, Merrick emphasized the business’s partnerships with a wide range of financial institutions, such as Qatar National Bank, Al Ansari Exchange, and fintech company Pyypl.
