Ripple launches cross-border blockchain payments in UAE

Ripple expands its blockchain payment services into the UAE, leveraging its Ripple Payments platform to address inefficiencies in traditional cross-border transactions. This move follows Ripple’s March licensing by the Dubai Financial Services Authority (DFSA), enabling it to cater to the high demand for improved cross-border payment solutions within a major global hub. Zand Bank, the UAE’s first all-digital bank, and Mamo, a business-focused fintech payment platform, will be the initial users of this system.

Ripple Payments uniquely combines stablecoins, cryptocurrencies, and fiat currencies to facilitate faster and more transparent transactions, a key advantage over traditional methods often plagued by high fees and lengthy settlement times. This innovative approach aligns with the UAE’s progressive stance on digital assets.

Despite ranking 56th globally in Chainalysis’ 2024 crypto adoption index, the UAE demonstrates significant potential, scoring highly in decentralized finance (DeFi), stablecoin usage, and altcoin adoption. This ranking is expected to improve further given recent regulatory developments. Several emirates, including Abu Dhabi and Dubai, are actively pursuing the establishment of crypto hubs, evidenced by the acceptance of USDT in Abu Dhabi (December 2024) and the recognition of USDC and EURC as the first stablecoins under the emirate’s regulatory framework in 2025. Further bolstering the UAE’s digital asset strategy is the ongoing development of a central bank digital currency (CBDC), the digital dirham.

Recent regulatory actions underscore the UAE’s commitment to responsible crypto innovation. Dubai’s Virtual Assets Regulatory Authority (VARA) announced enhanced oversight for crypto asset activities, specifically margin trading and token distribution, with a 30-day compliance period ending June 19th. This proactive approach aims to balance innovation with robust regulatory frameworks. However, the recent exposure of a Fake Rabby Wallet scam linked to a Dubai crypto CEO highlights the ongoing challenges of managing risks within the evolving crypto landscape.