Ripple has advanced its compliance pursuit with a full license to operate as a money service business in Dubai.
Digital asset infrastructure provider Ripple Labs Inc has received in-principle approval from the Dubai Financial Services Authority (DFSA). This license allows the firm to expand its services from the Dubai International Financial Centre (DIFC). Significantly, this milestone reinforces Ripple’s global footprint as a regulated crypto service provider.
It also makes the firm the first blockchain-enabled payment services provider licensed by the DFSA, the independent financial services regulator conducted in or from the DIFC.
DFSA Approval Adds to Ripple’s List of Licenses
The in-principle authorization from the DFSA also helps the blockchain payment firm introduce its cross-border payment services in the United Arab Emirates (UAE). These include Ripple Payments Direct (RPD), which provides a direct financial arrangement for cross-border fiat payment services. This avenue allows the firm to expand its user base by several millions.
In its published statement, Ripple noted that the latest development aligns with its mission to provide businesses with faster, cost-effective, and more efficient cross-border payment solutions. The firm achieves this feat by combining robust regulatory compliance with ongoing investments in critical infrastructure components such as liquidity, crypto custody, and on/off-ramps between fiat and digital assets.
According to Brad Garlinghouse, CEO of the payment organization, “Blockchain and crypto technologies are here to stay. With its forward-thinking regulatory approach and clear guidance for innovative businesses seeking to invest and scale, the UAE is positioning itself as a global leader in this new era of financial technology.”
Consequently, this DFSA approval adds to the many licenses Ripple has received from different regions over the years. In 2022, it secured a license to operate in Ireland through a local startup. A year ago, the Singapore arm of Ripple Labs obtained the full license from the region. The firm required this license to become a regional Major Payment Institution (MPI).
The Monetary Authority of Singapore (MAS) issued the license four months after Ripple secured an initial in-principle approval. Most of these licenses were bagged when Ripple was seeking succor outside the US due to the SEC enforcement actions. In the early days of the SEC lawsuit, Ripple faced a significant strain in furthering its business in the US.
Several exchanges delisted XRP XRP $1.80 24h volatility: 5.4% Market cap: $109.53 B Vol. 24h: $4.59 B , and even partners, including Moneygram International Inc (NASDAQ: MGI), cut off their deal with the payments firm. Notably, with some clarity on XRP securities status, Ripple’s business landscape has improved.
Ripple Mints RLUSD in Private Beta Testing
Apart from the several licenses and approvals, Ripple is committed to improving the products in its ecosystem.
It is currently working on its USD-pegged stablecoin, RLUSD. The token is already in its private beta testing phase on the XRP Ledger and Ethereum mainnet. A couple of RLUSD tokens have been minted in the process. Between September 28 and 29, more than 1.7 million RLUSD were minted.
Ripple Stablecoin Tracker shows that about 600,000 RLUSD were minted on September 30.
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