Ripple is reportedly exploring the launch of a Dirham-backed stablecoin in the UAE, capitalizing on the country’s clear regulatory framework for digital assets.
This move comes amid rising speculation that Ripple may soon launch the RLUSD stablecoin in the United States, especially following Donald Trump’s victory in the 2024 presidential elections, which could bring regulatory clarity to the crypto space.
The UAE has emerged as a leading global hub for digital asset regulation, with the Central Bank of the UAE (CBUAE) establishing a framework to support both Dirham-backed stablecoins and other digital currencies. This clear regulatory path has attracted Ripple, which has a long-standing presence in the region. Ripple’s payment solutions were first adopted by the National Bank of Abu Dhabi, highlighting the firm’s influence in the Middle East. The country’s proactive stance on blockchain integration makes it an ideal location for Ripple to introduce a stablecoin pegged to the Dirham, offering a stable digital asset for businesses and consumers engaged in cross-border transactions and remittances.
Ripple’s potential Dirham-backed stablecoin would align with the UAE’s broader push to promote blockchain innovation and enhance digital payments. Ripple has highlighted the benefits of stablecoins, including providing “safer, more efficient” alternatives to traditional currencies and reducing exposure to volatility. The UAE’s regulatory clarity will likely support stablecoin adoption, particularly for use in cross-border remittances and digital banking services.
Meanwhile, speculation about Ripple’s potential launch of RLUSD, a US dollar-backed stablecoin, continues to intensify. Ripple CEO Brad Garlinghouse has expressed optimism about the project, particularly in light of anticipated regulatory changes under the Trump administration. Additionally, Ripple has recently moved 294,000 RLUSD tokens, fueling further discussions about the company’s stablecoin plans.
For Ripple, the Dirham-backed stablecoin represents a significant opportunity to offer a regionally stable digital currency that could facilitate smoother, cost-effective transactions for UAE-based businesses and financial institutions. Such a stablecoin could streamline trade and remittance processes in the region, while also serving as a key player in Ripple’s broader strategy to expand blockchain adoption.
Despite the ongoing speculation, the price of XRP remained relatively flat at $0.5513, although it briefly peaked at $0.5597 in the last 24 hours. XRP’s Futures Open Interest has seen a decline, but recent moves by Binance to add XRP and Dogecoin (DOGE) to its Smart Arbitrage offerings have sparked further speculation of an upcoming rally in the cryptocurrency market.
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