Ripple Labs could be exploring the launch of a dirham-backed stablecoin in the United Arab Emirates (UAE), expanding beyond its existing US-dollar-backed stablecoin, RLUSD. This speculation arises following Ripple’s newest blog post dated November 7, 2024, titled “UAE Stablecoin Regulation: A Blueprint for Financial Innovation.” The post hints at significant interest by Ripple in a dirham-backed stablecoin.

Will Ripple Launch A Dirham-Stablecoin?

The blog post outlines the UAE Central Bank’s (CBUAE) newly introduced regulatory framework designed to integrate both dirham-backed and non-AED stablecoins into the nation’s financial systems. “New regulations from the Central Bank of the United Arab Emirates (CBUAE) designed to integrate dirham-backed stablecoins as well as non-AED backed stablecoins into its financial systems are emblematic of this shift,” the Ripple team states.

The CBUAE’s framework aims to bolster the UAE’s standing as a global leader in digital asset regulation by providing clear guidelines that facilitate the issuance and use of AED-backed stablecoins for payments, while allowing non-dirham stablecoins to be registered for virtual asset transactions. “By embracing stablecoins, the UAE is laying the groundwork for safer, more efficient financial systems,” the Ripple blog emphasizes.

Ripple’s involvement in the region is well-established. The National Bank of Abu Dhabi became the first Middle Eastern bank to utilize Ripple Payments for secure and cost-effective remittance solutions, handling nearly $80 million in outbound remittances in 2022. Furthermore, XRP received approval from the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Centre (DIFC) late last year.

The potential introduction of a dirham-backed stablecoin by Ripple aligns with the CBUAE’s objectives to promote a regulated stablecoin environment that mitigates the volatility inherent in cryptocurrencies and enhances in

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Author: Jake Simmons