Ripple CEO Brad Garlinghouse believes that the UAE offers advanced and clear regulations for registered companies to offer crypto services.
Renowned payment protocol Ripple has recently joined hands with the DIFC Innovation Hub, the development division of the Dubai International Financial Centre (DIFC), to promote blockchain and cryptocurrency growth in the United Arab Emirates (UAE). This move aligns with Ripple’s massive expansion in the region.
As per the official announcement, Ripple will link emerging developers with the DIFC Innovation Hub through the XRP Ledger (XRPL), a decentralized L1 blockchain. The goal is to promote blockchain among startups and scale-ups. Additionally, the duo also aims to expand the technology’s potential to traditional institutions.
To support this initiative, Ripple has pledged one billion XRP to developing and creating fresh use cases on the XRPL. This support goes beyond financial aid, providing technical assistance to entities to help turn their innovative ideas into realities.
Notably, the DIFC Innovation Hub is the leader for advancements in the UAE region. It accommodates over 1,000 tech enterprises in growth stages, digital researchers, and academic institutions, among others.
Middle Eastern Crypto Market on the Rise
The Middle Eastern crypto market has recently experienced remarkable growth, driven by crypto-friendly regulations. Ripple CEO Brad Garlinghouse also believes that the UAE offers advanced and clear regulations for registered companies to offer crypto services. A report by Bitget in April revealed a 166% year-over-year increase in daily traders in the region. Several factors contribute to this surge, including the UAE’s efforts to position itself as a local crypto hub.
This growing demand has placed Ripple as an industry leader in the UAE. It partnered with the payments company Tranglo to offer cross-border payments through RippleNet. In May last year, it opened the Ripple Middle East and Africa (MEA) local office. Soon after, the DIFC greenlit the use of Ripple’s native token XRP within the center. The move allowed registered crypto firms in the DIFC to integrate the cryptocurrency into their offerings.
In November, Ripple also organized its seventh annual customer gathering, Swell Global 2023, in Dubai.
Ripple’s Resilience amid Tensions
In recent years, Ripple has faced major regulatory challenges in the United States. The US Securities and Exchange Commission (SEC) sued Ripple and its executives in 2020 for selling XRP without registering it as a security.
Ripple states that the defense of this lawsuit has cost hundreds of millions of dollars to the company. XRP has plummeted 86% from its all-time high of $3.84, reached in 2018.
Nonetheless, as the case draws to a close, XRP has demonstrated strong performance. In July alone, the seventh-largest cryptocurrency by market cap surged over 50%, reaching a local high of $0.62. However, amidst a broader market downturn, XRP is currently trading around $0.51, down more than 20% over the past week.
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