Main Points:
- Ripple secures DFSA license in March 2025, becoming the first blockchain-enabled payments provider licensed in Dubai
- Onboards two new UAE customers: Zand Bank and Mamo
- Zand Bank plans to launch an AED-backed stablecoin, leveraging on-demand liquidity (ODL) with XRP as bridge currency
- Mamo aims to offer faster, more reliable cross-border payments for businesses and consumers
- Ripple Payments now operates in 90+ markets, processing over $70 billion in transaction volume
- UAE’s supportive fintech environment, including upcoming Digital Dirham CBDC, drives demand for blockchain solutions
1. Introduction
In an important strategic move, Ripple has extended its blockchain-powered cross-border payments platform into the United Arab Emirates by signing agreements with two key local partners—Zand Bank and Mamo. This announcement follows Ripple’s landmark licensing approval from the Dubai Financial Services Authority (DFSA) in March 2025, empowering the company to manage end-to-end global payment flows for banks, fintechs, and crypto firms in one of the world’s most dynamic financial hubs.
For investors and practitioners seeking new crypto assets, revenue sources, and practical blockchain applications, this expansion underscores both regulatory progress in the Middle East and the growing real-world utility of digital assets like XRP.
2. Significance of the DFSA License
Obtaining a DFSA license marked a watershed moment for Ripple. As the first blockchain-enabled payments provider to gain full authorization from Dubai’s premier financial regulator, Ripple can now conduct 24/7/365 settlements with near-instant transaction times—addressing the inefficiencies of legacy cross-border rails, such as high fees, slow processing, and lack of transparency.
Reece Merrick, Managing Director for Middle East and Africa at Ripple, emphasized that the license “creates momentum” for its regional business and responds directly to demand for a modern alternative to traditional payment networks.
3. Details of the Partnerships
3.1 Zand Bank
Zand Bank, a pioneering digital bank in the UAE, has partnered with Ripple Payments to power its upcoming cross-border remittance services. As part of this collaboration, Zand plans to issue an AED-backed stablecoin in the coming months, enabling faster settlements and seamless transfers within the region.
Chirag Sampat, Head of Treasury and Markets at Zand Bank, noted that the partnership “aligns perfectly” with Zand’s digital finance roadmap and will enhance both corporate and retail payment offerings.
3.2 Mamo
Mamo, a fintech startup co-founded by Imad Gharazeddine, aims to provide businesses and consumers with “faster and more reliable cross-border payments.” By integrating Ripple’s blockchain infrastructure, Mamo will be able to offer instant liquidity and transparent fee structures—key differentiators in a market hungry for efficiency.
4. Technical Infrastructure and On-Demand Liquidity
Ripple Payments harnesses a combination of distributed ledger technology, digital assets, and a global network of payout partners. In select corridors, XRP—the native token of the Ripple network—serves as a bridge currency through On-Demand Liquidity (ODL), instantly converting one fiat currency to XRP and then into the destination fiat, all within seconds.
This model eliminates the need for pre-funded nostro/vostro accounts, reducing capital requirements and unlocking new revenue streams for financial institutions and fintechs. It also provides an avenue for new crypto asset demand, as XRP usage grows in proportion to transaction volumes.
5. Market Impact and Competitive Landscape
With over 90 markets live and more than $70 billion in processed volume, Ripple is positioning itself as a serious competitor to incumbents like SWIFT gpi. Traditional correspondent banking networks have long struggled with latency and opaque fee structures. By contrast, Ripple’s blockchain-based rails offer transparency at every step, giving banks and corporates real-time visibility into transaction status and costs.
In the Middle East, rapid remittance flows—estimated at over $90 billion annually into South Asia alone—create a fertile environment for blockchain disruption. Ripple’s partnerships in the UAE set the stage for further expansion into Africa, South Asia, and beyond, where cost savings and speed are critical for small businesses and migrant workers alike.
6. Broader Blockchain Adoption in the UAE
The UAE government has actively fostered a fintech ecosystem through initiatives like the FinTech Office in the Central Bank and the forthcoming Digital Dirham central bank digital currency (CBDC), slated for Q4 2025. By laying the regulatory groundwork—sandbox environments, clear licensing pathways, and national CBDC pilots—the UAE has signaled its intent to become a global hub for blockchain innovation.
This supportive environment has attracted numerous international players, including Project mBridge partners and major exchanges. For crypto investors, the UAE’s progress offers insight into how digital assets can transition from speculative instruments to integral components of national financial infrastructure.
7. Opportunities for New Crypto Assets and Revenue Streams
7.1 Stablecoins and Tokenized Fiat
Zand Bank’s AED-backed stablecoin project exemplifies the next frontier: tokenized fiat on public or private blockchains. Such stablecoins can facilitate instant settlement, programmable payments via smart contracts, and integration with DeFi protocols—opening revenue opportunities in trading, custody, and compliance services.
7.2 On-Demand Liquidity Services
Financial institutions can monetize ODL by charging basis point spreads on conversions, establishing liquidity corridors in emerging markets where pre-funding is costly or impractical. The ODL model also generates XRP trading volume, supporting deeper market liquidity and potential appreciation in the token’s value.
7.3 Blockchain-Enabled Trade Finance
Beyond payments, Ripple’s technology can extend to trade finance, supply chain settlement, and escrow services—areas where real-time settlement and immutable records mitigate counterparty risk and reduce capital lock-up.
8. Practical Blockchain Applications for VASP and EMI Operations
For Virtual Asset Service Providers (VASP) and Electronic Money Issuers (EMI), Ripple’s expansion provides a blueprint for integrating blockchain rails:
- Regulatory Engagement: Secure local licenses and participate in sandboxes.
- Infrastructure Integration: Deploy APIs to connect internal ledgers with blockchain networks.
- Asset Management: Leverage ODL to manage liquidity without large nostro reserves.
- Compliance Automation: Use on-chain transparency for AML/CFT checks and real-time audit trails.
- Customer Offering: Bundle fast cross-border settlement with programmable payment features to differentiate services.
By following these steps, VASPs and EMIs can reduce operational costs, enhance service speed, and create new fee-based revenue streams.
9. Conclusion
Ripple’s latest expansion in the UAE—anchored by its DFSA license and partnerships with Zand Bank and Mamo—highlights the accelerating convergence of blockchain technology and mainstream finance in one of the world’s fastest-growing fintech regions. For crypto investors, developers, and financial institutions, this development underscores the practical utility of digital assets in addressing real-world payment challenges.
As the UAE rolls out its Digital Dirham CBDC and continues to refine regulatory frameworks, opportunities abound for new tokenized products, on-demand liquidity services, and blockchain-enabled financial solutions. Stakeholders who move quickly to integrate these technologies stand to gain not only in cost savings and service improvements but also in capturing emerging revenue streams tied to the broader digital asset ecosystem.
