Ripple Labs Plans Launch of Dirham-Backed Stablecoin in UAE
Ripple Labs Inc is considering launching a Dirham-backed stablecoin in the UAE. Discussions are ongoing, coinciding with speculation about the timeline for the launch of RLUSD, a USD-pegged stablecoin. Donald Trump's potential victory in the 2024 U.S. Presidential election has reportedly eased conditions for the crypto industry in the region.
Ripple to Harness UAE's Stablecoin Regulatory Framework
Ripple acknowledges the global rise of stablecoins and projects their market valuation could reach $3 trillion in five years. A clear regulatory framework is essential for this growth. Many governments recognize the importance of regulations for stablecoin development, leading to efforts to establish comprehensive frameworks, with the UAE taking a lead in this initiative.
The Central Bank of the United Arab Emirates (CBUAE) has introduced regulations to integrate dirham-backed and non-AED-backed stablecoins into its financial systems, promoting financial inclusivity for virtual asset transactions. This move underscores the UAE’s ambition to be a leader in the digital asset space and reflects a trend towards progressive crypto regulation.
RLUSD Testing amid Anon Wallet Transfers
Ripple has maintained a presence in the UAE since partnering with the National Bank of Fujairah PJSC (NBF) four years ago to enhance payment solutions. Ripple expanded further in 2022 through Tranglo.
As the UAE shifts towards stablecoins, Ripple aims to capture market share with the Dirham-backed stablecoin. The RLUSD launch is still in progress. Recent data from Ripple Stablecoin Tracker indicates activity, including transfers of 294,000 RLUSD between anonymous wallets and 147,000 RLUSD from Treasury to unknown wallets. The last mint of RLUSD was recorded on October 26, indicating that the private beta testing phase, which began in August, may soon conclude.
This transition will facilitate the launch of the USD-pegged stablecoin on both the Ethereum blockchain and the XRP Ledger (XRPL).