Ripple has officially received regulatory approval from the Dubai Financial Services Authority (DFSA) to offer cryptocurency-based payment services in the Dubai International Financial Centre (DIFC).
This is a major step for the company, making it the first blockchain-powered payments provider to get a licence from the DFSA.
With this approval, Ripple can now offer its payment solutions across the United Arab Emirates (UAE), helping businesses and financial institutions improve their cross-border transactions.
The announcement for securing the DFSA licence was made on 13 March by Ripple. This followed an in-principle approval the company received in October 2024. The new licence allows Ripple to officially provide blockchain-based payment services to businesses across the UAE.
Ripple has been working to establish a strong presence in the region. The company set up its regional headquarters in Dubai in 2020 and has been expanding ever since.
Ripple can now assist financial institutions in the UAE that want to use blockchain technology to make payments faster, cheaper, and more transparent. Ripple’s CEO, Brad Garlinghouse, expressed his excitement about the approval. He stated-
“We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption. Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit”.
Dubai’s DIFC is one of the most important financial hubs in the Middle East. It has its own regulatory framework and policies, which make it attractive for fintech companies.
DIFC CEO, Arif Amiri, welcomed Ripple’s approval, saying that this step strengthens Dubai’s reputation as a global leader in financial technology and digital assets.
Rising demand for blockchain payments
The demand for faster and more efficient cross-border payments is growing in the Middle East. According to the World Bank, the UAE’s cross-border payments market is worth about $40 billion. Many businesses—both crypto-focused firms and traditional financial institutions—are looking for better payment solutions.
One of the biggest problems with traditional cross-border payments is that they are slow, expensive, and lack transparency. This is where blockchain technology comes in. Ripple’s payment solutions use digital assets to reduce costs, speed up transactions, and make payments more transparent.
Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, highlighted the importance of the DFSA approval. He said-
“Securing this DFSA licence will enable us to better serve the growing demand for faster, cheaper, and more transparent cross-border transactions in one of the world’s largest cross-border payments hubs.”
Ripple has been actively involved in blockchain development in the region. The company has been working with the DIFC Innovation Hub, an initiative that promotes blockchain adoption in the Middle East.
Last year, Ripple committed 1 billion $XRP tokens to support blockchain development and real-world use cases through the XRP Ledger (XRPL), its decentralised blockchain platform.
This latest approval in Dubai is part of Ripple’s broader effort to expand its operations globally. The company has already secured several important regulatory approvals in different parts of the world.
In Singapore, Ripple obtained a Major Payments Institution licence from the Monetary Authority of Singapore. In the United States, it holds a Trust Charter from the New York Department of Financial Services.
The company has also registered as a Virtual Asset Service Provider with the Central Bank of Ireland and has acquired Money Transmitter Licences across multiple US states.
By obtaining these licences, Ripple is positioning itself as a trusted provider of blockchain-based payment solutions for businesses and financial institutions worldwide.
Legal battle with the SEC nears conclusion
While Ripple is making significant progress internationally, it is still dealing with a long-running legal case in the United States.
The company has been in a legal dispute with the US Securities and Exchange Commission (SEC) since 2020 over whether its cryptocurrency, $XRP, should be considered a security.
In August 2023, a US district court ruled against Ripple, imposing a $125 million fine and preventing the company from selling $XRP to institutional investors.
However, Ripple’s legal team is now negotiating with the SEC to get better terms. The company argues that the SEC’s changing approach to crypto regulation should be considered in the settlement.
Journalist, Eleanor Terrett, who has been closely following the case, reported that a resolution may be near but that key issues still need to be resolved. She cited sources who said-
Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing — but now the SEC itself is seemingly unsure whether any wrongdoing occurred.”
Legal experts believe Ripple may be pushing to have certain restrictions lifted, particularly the ban on institutional XRP sales.
Attorney, Jeremy Hogan, suggested that Ripple and the SEC might be working on a private agreement that would allow both sides to settle the case without further legal battles.
Another legal expert, MetaLawMan, proposed that Ripple might be slowing down the settlement process on purpose. He suggested that the company could be trying to remove parts of Judge Torres’s ruling that label $XRP as a security.
This would be important for Ripple if it plans to launch an initial public offering (IPO) or offer securities in the future. There is also speculation that the SEC may be willing to settle quickly by accepting the $125 million fine and moving on. However, if Ripple continues to push for better terms, this could delay the final agreement.
What’s next for Ripple?
With its regulatory approval in Dubai, Ripple is strengthening its position in the Middle East. The region already accounts for 20% of Ripple’s global customer base, and this new licence will allow the company to expand even further.
In addition to its ongoing legal battle with the SEC, Ripple is also seeing increased interest in $XRP from financial institutions and investors. Several companies, including WisdomTree, Bitwise, 21Shares, Canary Capital, and NYSE Arca, have filed applications with the SEC to launch XRP-based exchange-traded funds (ETFs).
Meanwhile, digital asset manager Franklin Templeton has filed for an $XRP spot ETF, signalling growing institutional interest in Ripple’s technology.
Despite the legal uncertainties in the US, Ripple’s latest approval in Dubai marks an important step in its global expansion. By securing regulatory licences in key financial hubs, the company is building a strong foundation for the future of blockchain-based payments.
Ripple’s ability to operate legally in Dubai could also encourage other crypto companies to expand in the region. The UAE has positioned itself as a forward-thinking country when it comes to digital assets, and its clear regulatory framework is attracting major players in the industry.
