Ripple Collaborates with Two Banks to Introduce Cross-Border XRP Solution
Ripple has officially launched its cross-border crypto payment services in the United Arab Emirates (UAE), marking a significant step in the company’s expansion efforts. The XRP issuer has partnered with two local banks, Zand Bank and Mamo, to facilitate these services, which will cater to banks, crypto firms, and fintech companies globally. This initiative aims to position Ripple Payments at the forefront of the UAE’s international settlement services, as announced in a blog post on May 19.
Strategic Partnerships in the UAE
Ripple’s collaboration with Zand Bank and Mamo is set to enhance cross-border transactions using cryptocurrency. Customers of these banks will have access to Ripple Payments, allowing them to conduct seamless international transactions. This partnership is particularly noteworthy as it comes after Ripple received authorization to operate in the Dubai International Financial Centre (DIFC) earlier this year. The Dubai Financial Services Authority (DFSA) granted Ripple a license, enabling the company to integrate into the UAE’s financial ecosystem. Ripple’s entry into the UAE aligns with the region’s increasing readiness for institutional crypto adoption, especially in the Middle East and Africa (MEA).
The Ripple Payments service boasts access to over 90 payout markets, covering more than 90 percent of daily foreign exchange transactions. The company claims to process over $70 billion in transaction volume, underscoring its capability to handle significant cross-border payment demands. This extensive network positions Ripple as a key player in the evolving landscape of digital finance in the UAE.
Addressing Traditional Payment Inefficiencies
Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, emphasized the importance of the DFSA license in addressing the inefficiencies associated with traditional cross-border payments. High fees, lengthy settlement times, and a lack of transparency have long plagued this sector. By leveraging its technology, Ripple aims to provide solutions that streamline these processes, making it easier for businesses and individuals to engage in international transactions.
The UAE government has been recognized by Ripple for fostering a supportive environment for the growth of the crypto sector. This collaborative spirit is expected to further enhance the adoption of digital currencies and blockchain technology in the region, positioning the UAE as a leading hub for cryptocurrency innovation.
Future Aspirations and Market Developments
In addition to its recent partnerships, Ripple is looking to expand its offerings in the crypto market. The company has expressed interest in acquiring Circle, a rival stablecoin provider, with a proposal of up to $5 billion. However, Circle has rejected this offer, deeming it insufficient. Despite this setback, Ripple remains interested in pursuing the acquisition, indicating its commitment to strengthening its position in the stablecoin market.
Meanwhile, the UAE is actively preparing for the future of digital currencies, including the development of a national central bank digital currency (CBDC) and AED-backed stablecoins. These initiatives reflect the UAE’s ambition to remain at the forefront of the global cryptocurrency landscape, further enhancing its appeal as a destination for crypto-related businesses and innovations.
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