Ripple Is Expected To Launch A Dirham-Backed Stablecoin For The UAE

Recent reports have sparked speculation that Ripple Labs, the developer of the Ripple (XRP) token and the Ripple blockchain, is preparing to launch a stablecoin pegged to Dirham (AED) in the United Arab Emirates. 

The news picked up steam following reports that Ripple will be launching its US dollar-backed RLUSD stablecoin soon, especially after Donald Trump’s victory, which has been a bullish moment for the crypto market as evidenced by Bitcoin (BTC) recording all-time high prices two days in a row.  

Ripple to Launch AED-Pegged Stablecoin in the UAE

In a recent blog, Ripple stated that the UAE has distinguished itself as an international hub for progressive digital asset regulation, creating a fertile environment for innovation in blockchain technology. 

The Central Bank of the UAE has introduced a regulatory framework supporting AED-backed stablecoins alongside other cryptocurrencies pegged to the value of global fiat currencies. The central bank’s approach is notable because it allows non-Dirham stablecoins to be registered and used for crypto asset transactions within the country. 

The policy update also highlights the country’s decision to promote a clear regulatory structure that enables both businesses and consumers to access a more secure and efficient payment system through stablecoins. The government aims to position the Middle Eastern nation as a leader in digital finance. 

Ripple, which has a longstanding presence in the UAE, will be the biggest beneficiary of the latest regulatory development. The National Bank of Abu Dhabi became the first banking institution in the Middle East to adopt Ripple’s blockchain-based payment solutions, further underscoring the company’s influence in the region. 

According to the blockchain payments solution provider, stablecoins have the potential to transform the financial sector by providing safer and more efficient payment methods that avoid currency fluctuations. Ripple emphasized that the UAE’s latest regulatory update will support stablecoin adoption in cross-border transactions, remittances, and digital banking services. 

Meanwhile, there is speculation over the potential of Ripple’s USD-backed stablecoin, RLUSD, attracting significant attention from investors. Ripple CEO Brad Garlinghouse and many market experts are optimistic about the token’s launch, especially as Donald Trump’s policies are widely expected to clear the regulatory path for crypto assets in the United States. 

However, the biggest highlight would be Ripple’s Dirham-backed stablecoin for the UAE, which could mark a significant milestone for the company as the asset would be pegged to a highly reliable fiat currency. The cryptocurrency would also be appealing to UAE-based companies and financial institutions that are seeking cost-effective ways to handle cross-border transactions. Furthermore, an AED-backed cryptocurrency could further streamline trade and remittance processes for the Arab nation. 

Ripple Labs and DIFC Partner to Accelerate Adoption and Innovation of Blockchain Tech and Cryptocurrencies 

Last month, Ripple announced a partnership with the Dubai International Financial Centre’s (DIFC) Innovation Hub to accelerate blockchain and digital assets innovation in the UAE. The collaboration aims to drive the adoption of blockchain technology and cryptocurrencies among early-stage and scale-up companies and introduce the technology to traditional large strategic institutions. 

Ripple has delegated 1 billion XRP tokens, valued at $551.6 million, to the initiative that will accelerate the development of the XRP Ledger (XRPL) and find new global use cases on the layer-1 blockchain. The company also plans to provide financial, technical, and business support to developers. 

Ripple’s Middle East and North Africa (MENA) regional office is located within the DIFC. Last year, the DIFC approved XRP for use within the Centre, allowing virtual assets firms licensed by the DIFC to incorporate the Ripple coin into their services. 

In August, stablecoin issuer Tether said that it plans to introduce a stablecoin pegged to the UAE dirham in collaboration with Abu Dhabi-listed crypto conglomerate Pheonix Group (PHX). Tether is currently seeking the UAE central bank’s Payment Token Services Regulation license to issue its proposed dirham-backed stablecoin.  

At the time of writing, Ripple (XRP) is trading at $0.5522 – up 0.28% in the last 24 hours.

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