Ripple Labs has unveiled a significant development in its journey, with the Dubai Financial Services Authority (DFSA) officially granting approval for the use of its associated digital asset, XRP, within the Dubai International Financial Centre (DIFC).
By acknowledging XRP as a digital asset, the DFSA has effectively given the green light for licensed firms within the region to integrate it into their cryptocurrency service offerings.
This approval signifies a significant milestone for the Ripple ecosystem, following its recent distinction as the sole legally recognised non-security digital asset in the United States (US), a status secured through Judge Analisa Torres’ landmark ruling on 13 July.
It is noteworthy that XRP joins the ranks of other established digital currencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), which were previously approved under the DFSA’s virtual assets regime.
Furthermore, this new development situates XRP within the legal and regulatory framework offered by the DIFC, paving the way for greater clarity and accessibility.
Brad Garlinghouse, Ripple CEO said:
“Dubai continues to demonstrate global leadership when it comes to the regulation of virtual assets and nurturing innovation. It’s refreshing to see the DFSA encourage the adoption and use of digital assets such as XRP to position Dubai as a leading financial services hub intent on attracting foreign investment and accelerating economic growth.”
The issuance of this Ripple license is poised to catalyse the adoption of XRP and foster the expansion of the XRP ecosystem.
The announcement underscores the potential for unlocking fresh regional payment solutions and other use cases on the XRP Ledger.
Ripple’s interest in Dubai has been evident for some time, particularly as it navigated regulatory challenges in the US.
The company established its MENA headquarters in the DIFC in 2020, drawn to the region’s favourable attributes, including innovation-forward regulations, a robust network, and a reputation conducive to financial sector growth.
Beyond the DIFC, Ripple holds other licenses, including the Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS).
Moreover, the company is actively pursuing licenses in the UK and Ireland, indicating its commitment to compliance and expansion on a global scale.
In related news, Ripple has been selected as the official technology partner for the digital lari pilot project by the National Bank of Georgia.
This announcement follows a rigorous selection process, with Ripple emerging as the partner of choice from a pool of nine candidates.
While the project centres on a tokenised version of the Georgian lari (GEL) rather than the XRP token, it will leverage Ripple’s CBDC Platform for central bank digital currencies, underpinned by the XRP Ledger (XRPL).
The pilot phase is set to explore various potential applications for the digital lari, encompassing the public sector, business, and general retail usage.
This initiative aligns with Ripple’s ongoing efforts to collaborate with governments across the globe on pilot programs, extending to countries like Bhutan, Palau, Colombia, Montenegro, and Hong Kong.
In fact, the firm is currently engaged with more than 20 other nations in similar endeavours, signalling a commitment to advancing innovative financial solutions worldwide.