• Ripple has announced that the Dubai Financial Services Authority (DFSA) has approved the use of the digital asset XRP within the Dubai International Financial Centre (DIFC).
• XRP will now benefit from legal and regulatory clarity within the DIFC and institutions based in the DIFC will be able to use XRP to facilitate faster and more efficient global value exchange.
• The DFSA is committed to guiding the long-term development of the crypto, payment, and fintech ecosystem within Dubai and supporting companies to establish themselves in the free zone.

Ripple revealed in a recent announcement that the Dubai Financial Services Authority has approved XRP. What does this approval mean for the XRP token?

XRP Token Receives Approval in Dubai

Ripple announced that the Dubai Financial Services Authority (DFSA) has approved the use of the digital asset XRP within the Dubai International Financial Centre (DIFC). Licensed virtual asset firms in the DIFC can now include XRP in their services.

XRP has become the first virtual asset approved by the regime since the DFSA started accepting external applications. XRP joins BTC, ETH, and LTC as assets previously approved under the DFSA’s virtual asset regime. XRP will now benefit from legal and regulatory clarity within the DIFC, allowing institutions in the DIFC to use it to accelerate global value exchange more efficiently.

The United Arab Emirates, one of the most innovative jurisdictions that aims to provide clarity and guidance in regulating virtual asset services offered by a number of licensed firms, is swiftly gaining recognition with the DFSA’s comprehensive regime for the DIFC.

As an independent regulator, the DFSA is committed to guiding the long-term development of the crypto, payment, and fintech ecosystem within Dubai and supporting companies to establish themselves in the free zone. Dubai is also home to the Virtual Assets Regulatory Authority (VARA), established last year with the goal of protecting investors, providing high-level risk assurance, and facilitating innovation.

Brad Garlinghouse, CEO of Ripple, said, “Dubai continues to lead in the regulation and fostering innovation around virtual assets. We are excited that the DFSA is encouraging the use of and adoption of digital assets like XRP to position Dubai as a leading financial services hub that attracts foreign investment and accelerates economic growth. Ripple will continue to expand its presence in Dubai and collaborate closely with regulators to realize the full potential of cryptocurrencies.”

Possible Implications of XRP Listing

The listing of XRP in Dubai has the potential to open up new regional payment and other virtual asset use cases on the XRP Ledger. Ripple is one of the major developers and users of the XRP Ledger and set up its MENA regional headquarters here in 2020 due to Dubai’s reputation as an innovation-focused regulatory hub with a broad network and global financial center status. Approximately 20% of Ripple’s customers are based in the MENA region.

This announcement comes as Ripple Swell is scheduled to take place in Dubai on November 8-9. Ripple Swell, the leading event that brings together influential figures in the financial industry and regulatory authorities, has previously hosted successful events where hundreds of Ripple customers and partners gathered in major global financial centers like London and Singapore. Alya Al Zarouni, COO of DIFC, will share the main stage, while Hensen Orser, CEO of VARA, and other national and international thought leaders, decision-makers, and policymakers from the worlds of finance, fintech, and crypto will also participate in the event.