Is Ripple Planning To Launch Dirham-Backed Stablecoin In UAE?

Ripple has recently sparked discussions among market participants over a potential Dirham-backed stablecoin launch in the UAE. Notably, this comes amid soaring speculations over the RLUSD launch by the blockchain firm soon, especially after Donald Trump’s victory in the US election in 2024. However, the firm’s recent focus on the UAE market and its clear regulatory path caught the eyes of investors, with many anticipating a potential stablecoin launch in the UAE.

Is Ripple Eyeing Stablecoin Launch In UAE?

In a recent Ripple blog, the firm said that the UAE has distinguished itself as a global hub for progressive digital asset regulation, creating a fertile environment for blockchain innovation. The Central Bank of the UAE (CBUAE) has introduced a regulatory framework to support both Dirham-backed and other stablecoins. This approach is notable for its inclusivity, as it allows non-AED (non-dirham) stablecoins to be registered and used within specific guidelines, mainly for virtual asset transactions.

The update also highlights the UAE’s decision to promote a clear regulatory structure. It enables businesses and consumers to access secure and efficient digital payments through stablecoins, positioning the nation as a leader in digital finance.

Meanwhile, the blockchain firm, with a longstanding presence in the UAE, stands to benefit significantly from this regulatory development. In fact, the National Bank of Abu Dhabi was the first bank in the region to adopt the company’s payment solutions, underscoring the blockchain company’s influence in the Middle East.

As the UAE now encourages stablecoin integration, the firm is likely to introduce a Dirham-backed stablecoin soon. This move also aligns with the nation’s focus on expanding blockchain infrastructure.

According to Ripple, stablecoins have the potential to transform the financial sector by offering “safer, more efficient” payment methods that avoid currency fluctuations. The company emphasized that this new regulatory clarity will support stablecoin adoption, especially in cross-border transactions, remittances, and digital banking services.

RLUSD Launch Speculations Amid UAE Expansion Plan

The speculations over the potential US dollar-backed stablecoin, RLUSD, have gained notable attention from investors. CEO Brad Garlinghouse and many other experts have been optimistic about the potential launch, especially as Donald Trump’s presidential win is expected to set a clear crypto regulatory path in the country. Besides, Ripple has also moved 294K RLUSD tokens recently, sparking discussions over the potential reason behind the move.

However, for Ripple, a Dirham-backed stablecoin would mark a significant milestone, offering a stable digital currency pegged to a reliable regional asset. The stablecoin could also appeal to UAE-based companies and financial institutions seeking cost-effective ways to handle transactions across borders. In addition, a Dirham-backed stablecoin could further streamline trade and remittance processes, especially for the UAE.

Meanwhile, the XRP price traded near the flatline today at $0.5513, despite the soaring speculations. The crypto has touched a 24-hour high of $0.5597, with its Futures Open Interest witnessing a decline during writing. However, Binance has recently added XRP and DOGE to Smart Arbitrage offerings, sparking speculations over a potential rally in crypto prices in the coming days.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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