- RLUSD is approved by the DFSA for use in Dubai’s DIFC.
- Integrates into Ripple Payments for efficient cross-border transactions.
- Partners with Dubai Land Department to tokenize real estate deeds.
One of Ripple’s products, the USD-backed RLUSD coin, is making the jump from payment systems to infrastructure fit for a sovereign nation. RLUSD has made history by becoming one of the first cryptocurrency tokens to be allowed for use by institutions and governments; it is currently regulated and approved by the Dubai Financial Services Authority (DFSA) for usage in the Dubai International Financial Centre (DIFC).
RLUSD Integrates into Dubai’s Financial Ecosystem
DFSA approved the operation of RLUSD based on DIFC, a major financial hub of the UAE. It allows stablecoin to become part of Ripple Payment systems for far cheaper cross-border transactions, which are happening at a much faster rate than before. And while RLUSD is in a very early stage of its life, early RLUSD adopters are local entities like fintech platform Mamo and digital bank Zand that are using RLUSD.
RLUSD has great potential to grow within the UAE’s $40 billion international payment market. In December 2024, it also launched a stablecoin that is backed by equal amounts of U.S. dollar deposits, government bonds, and cash equivalents to bring transparency and reliability. The monthly third-party audits further support institutional use.
“This approval makes Dubai a strong leader in digital finance and reiterates its status as a global frontrunner in digital finance,” Jack McDonald, Ripple’s Senior Vice President of Stablecoins, said about the milestone: “RLUSD being a first step of a series of values to come that will contribute to making blockchain reliable solutions.” According to data, last year transactions in stablecoins in the region surged up by 55 percent, as the demand for efficient payment systems also grew.
RLUSD Powers Sovereign Infrastructure
In addition to its strong performance in payment applications, RLUSD is also making waves in sovereign applications. Ctrl Alt and Ripple have partnered with the Dubai Land Department to tokenize real estate title deeds. RLUSD initiative reveals RLUSD’s value in supporting the Dubai Government’s critical infrastructure by bringing RLUSD into the Dubai land registry system.
The stablecoin isn’t just a part of the DeFi platform, but also provides liquidity in pools, such as more than $25 million in RLUSD supply within 24 hours of integration via Euler Finance. RLUSD’s ability to function as the utility for institutional cross-border flows also benefits from the Chainlink price feeds, which it is built on top of, with $600m in transaction volume transacted on those feeds.
The UAE’s progressive regulatory environment supports RLUSD’s expansion. The DFSA in Dubai encourages this kind of blockchain innovation, which allows roughly 7,000 licensed firms in DIFC to use RLUSD, while the U.S. and Europe are getting stricter on rules. This makes stablecoins sit right in the middle of these two ecosystems.
Besides, Ripple wants to replace slow systems like SWIFT with blockchain solutions. In addition to XRP, RLUSD is a transparent and cost-efficient global payment solution without intermediaries and lower in related costs. It is in sync with Dubai’s ambition to be among the top places globally in the digital finance and trade of more than $400 billion.
The use of the stablecoin in the sovereign systems shows that digital currencies have gained a new concept. Governments and institutions have seen RLUSD as a reliable means of modernizing financial and administrative infrastructure, to be used in cross-border payments and tokenized assets.
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