The sanction of Ripple by the Dubai Financial Services Authority has extended its global presence and strengthened its enterprises.
In an Oct. 1 statement, Ripple announced that it has received in-principle approval from the Dubai Financial Services Authority (DFSA), which is a significant milestone in its endeavors to encourage financial services innovation in the United Arab Emirates (UAE).
This further solidifies the firm’s status as a globally regulated entity, as it becomes the first blockchain-based payment service provider to receive a license from the DFSA.
In the interim, Ripple’s current portfolio of over 55 licenses globally, which includes those from the Monetary Authority of Singapore (MAS) and the New York Department of Financial Services (NYDFS), is further enhanced by the most recent DFSA approval.
Ripple disclosed that this DFSA approval would permit it to expand its operations in the Dubai International Financial Centre (DIFC).
In addition, the sanction enables Ripple to implement its enterprise-grade digital asset infrastructure throughout the UAE, which includes the introduction of its Ripple Payments Direct (RPD) solution for cross-border payments.
Therefore, the licensing could assist the organization in fulfilling its objective of providing cross-border payment services that are more rapidly and cost-effective, while also ensuring regulatory compliance through ongoing investments in critical infrastructure components, including asset custody, liquidity management, and the seamless transition between fiat and digital currencies.
Notably, Houlihan Lokey, a global investment bank, recently observed that Ripple’s ongoing expansion could position it as a significant competitor to SWIFT, the dominant participant in cross-border payments.
In the interim, Ripple’s licensing initiative is a component of its overarching strategy to expand its presence in the Middle East. The company established its regional headquarters in Dubai in 2020.
The regulatory clarity of the UAE has facilitated the development of Ripple in the Middle East, fostering an environment that is conducive to the flourishing of innovative crypto firms. Ripple has access to swiftly expanding markets in Africa, South Asia, and other regions as a result of the country’s regulatory framework.
CEO Brad Garlinghouse of Ripple underscored the UAE’s prominence in the financial technology sector, as he stated:
“The UAE is establishing itself as a global leader in this new era of financial technology through its forward-thinking regulatory approach and explicit guidance for innovative businesses that are seeking to invest and scale.”
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