Ripple Gains In-Principle Approval To Expand Payments Network to UAE

Key Takeaways

• Ripple has won in-principle approval to expand its cross-border payments solution in the UAE.
• UAE is an integral part of Ripple’s Middle East expansion.
• Ripple now boasts 55 payment services approval licenses from multiple currencies. 

Blockchain technology firm Ripple has received in-principle approval from the Dubai Financial Services Authority (DFSA) to expand its end-to-end payment system.

The approval will allow Ripple to expand its cross-border payment services, including Ripple Payments Direct (RPD), to a broader user base in the UAE.

Ripple Becomes First Blockchain Payment Firm to Get DFSA Nod

Ripple became the first blockchain payment firm to receive approval from the DFSA. The in-principle approval will allow Ripple to expand its Middle East services to a broader audience base. 

UAE is an integral part of Ripple’s Middle East expansion plan, having set up a regional headquarters in Dubai in 2020.

Ripple services were earlier limited to the  Dubai International Financial Centre (DIFC), a special economic zone in the country. The approval comes just a month after Ripple partnered with DIFC to accelerate blockchain adoption.

The DIFC is designated as the early trial ground where crypto projects and startups are first approved to offer their services. If successful, they are granted access to the wider user base.

In its official  announcement, Ripple commended the UAE’s regulatory landscape and said the country’s forward-thinking regulatory approach positions it as the crypto hub.

Ripple’s Decentralized Cross-Payment a Game Changer?

Ripple’s  decentralized cross-border payment services, called RPD, have been a game changer for the blockchain firm. 

Despite its regulatory troubles and business limitations owing to the Securities and Exchange Commission (SEC) lawsuit in the United States, the payment solution has helped the firm expand its businesses worldwide.

RPD leverages blockchain technology to transfer funds across the border within minutes at an inexpensive price.

The cross-border payment utilizes the XRP token for liquidity and allows partner banks to transfer funds with minimal cost. However, customers don’t have to buy or sell XRP; the payment network does it internally and allows the transfer of fiat currencies like the U.S. Dollar or Euro.

For example, a partner enterprise wants to send $100,000 from Japan to UAE. The enterprise will fill in the information in the RDP. The sender can select the mode of payment, USD or EUR, and the payout currency they want the beneficiary to receive.

Source: Ripple

Ripple then offers the conversion rate to the beneficiary. If the beneficiary accepts the payout quote, Ripple transfers the equivalent amount in XRP to the destination node and converts it into the fiat currency of the beneficiary’s choice.

RPD services support several enterprise payment options, including treasury payments, business-to-business (B2B) payments, business-to-consumer (B2C) payments, and payments from a business to a customer.

Ripple Now Boasts 55 International Licenses

The in-principle approval from the UAE marks Ripple’s 55th international compliance license.

Ripple has also secured licenses from the New York Department of Financial Services (NYDFS) , the Monetary Authority of Singapore (MAS) , and the Central Bank of Ireland (CBI).

As a result of its aggressive expansion efforts, Ripple has built a network of high-profile banking partners, including central banks and top private financial institutions. The company’s advanced payment technology has allowed it to navigate complex regulatory environments and circumvent U.S. regulatory issues that once threatened to hamstring its growth.

Now, with the SEC’s high-profile lawsuit against Ripple nearing its conclusion, the company is shifting its focus towards reinvigorating its expansion efforts in the U.S. market.