Ripple has expanded its presence in the Middle East by partnering with two major United Arab Emirates (UAE)-based financial institutions: Zand Bank and Mamo. These agreements mark a significant step in the adoption of Ripple’s blockchain-based cross-border payment solutions in the region. The move follows Ripple’s recent regulatory approval from the Dubai Financial Services Authority (DFSA), enabling the company to offer end-to-end global payment services to banks, fintechs, and crypto-related businesses.
The partnerships emphasize Ripple’s growing influence in the global payments landscape and its commitment to addressing longstanding inefficiencies in traditional international money transfers.
Overview of the New Partnerships
Ripple continues to strengthen its foothold in the UAE financial sector through collaborations with established institutions. Zand Bank, known for its fully digital banking services, and Mamo, a recognized payments and digital wallet provider, will integrate Ripple Payments to improve transaction speed and reliability.
This development is particularly significant given the increasing demand for seamless cross-border payment services in one of the world’s most dynamic economic regions.
Regulatory Milestone: The DFSA License
In March, Ripple obtained a key license from the Dubai Financial Services Authority (DFSA). This approval allows Ripple to operate within the Dubai International Financial Centre (DIFC), providing a regulated framework for offering payment services and digital asset solutions.
Reece Merrick, Managing Director for Middle East and Africa at Ripple, highlighted the importance of this achievement:
“Securing our DFSA license enables Ripple to better serve the demand for solutions to the inefficiencies of traditional cross-border payments.”
This regulatory green light not only enhances Ripple’s credibility but also positions it to serve a wider range of financial entities in the region.
What Zand Bank Brings to the Collaboration
Zand Bank is the UAE’s first fully digital bank, aiming to redefine digital banking with innovative solutions. By integrating Ripple’s technology, Zand intends to enhance its cross-border transaction capabilities and explore new digital asset offerings.
Chirag Sampat, Head of Treasury and Markets at Zand Bank, stated:
“We are excited to soon launch an AED-backed stablecoin.”
This indicates that the partnership could extend beyond payments into the realm of digital currency innovation.
Mamo’s Role in the Expansion
Mamo is a digital payments platform focused on simplifying money transfers for both individual users and businesses. By leveraging Ripple’s infrastructure, Mamo aims to offer faster and more reliable international payment services.
According to Imad Gharazeddine, CEO and Co-Founder of Mamo:
“Using Ripple’s services allows us to offer faster and more reliable cross-border payments for both businesses and consumers looking to scale their UAE operations.”
This collaboration is expected to enhance Mamo’s ability to support startups and enterprises operating within and beyond the UAE.
How Ripple Payments Works
Ripple Payments is a blockchain-powered platform designed to facilitate fast and cost-effective international money transfers. It operates through a global network of financial partners, enabling transactions to be settled within minutes instead of days.
Key features of Ripple Payments include:
- Support for over 90 payout markets worldwide.
- More than $70 billion in processed transaction volume.
- Availability in major financial hubs, including the U.S., Brazil, Australia, Switzerland, Mexico, and Dubai.
The platform uses Ripple’s native digital asset, XRP, as a bridge currency in certain transactions through its On-Demand Liquidity (ODL) service. This allows for instant conversion between fiat currencies, reducing the need for pre-funded accounts and lowering liquidity costs.
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Broader Impact on the Financial Ecosystem
Ripple’s expansion in the UAE reflects a larger trend of financial institutions adopting blockchain technology to improve operational efficiency. The use of distributed ledger technology (DLT) helps reduce transaction times, minimize costs, and enhance transparency in cross-border payments.
These developments also align with the UAE’s vision of becoming a global leader in fintech and digital innovation. With strong regulatory support and increasing institutional adoption, the region is poised for further growth in blockchain-based financial services.
Frequently Asked Questions
What is Ripple Payments?
Ripple Payments is a blockchain-based platform that enables fast and low-cost international money transfers. It uses a global network of partners and, in some cases, the XRP cryptocurrency as a bridge to facilitate instant currency conversions.
How does the DFSA license benefit Ripple?
The DFSA license allows Ripple to offer regulated payment services and digital asset solutions within the Dubai International Financial Centre. This enhances its ability to serve banks, fintech companies, and other financial institutions in the region.
What does Zand Bank plan to do with Ripple?
Zand Bank will use Ripple’s technology to improve its cross-border payment services and has announced plans to launch an AED-backed stablecoin in the near future.
Who is Mamo?
Mamo is a UAE-based digital wallet and payments provider that enables businesses and individuals to send and receive money easily. Its partnership with Ripple will help it offer faster international payment options.
Is XRP used in all Ripple transactions?
No, XRP is used primarily in Ripple’s On-Demand Liquidity (ODL) service as a bridge currency for instant fiat conversions. Other transactions may use traditional or alternative settlement methods.
Which regions does Ripple currently operate in?
Ripple Payments is available in over 90 markets, with significant operations in the U.S., Brazil, Australia, Switzerland, Mexico, and the UAE.
Conclusion
Ripple’s partnerships with Zand Bank and Mamo underscore its strategic focus on expanding into high-growth markets like the UAE. With regulatory approval from the DFSA and a robust technological foundation, Ripple is well-positioned to transform the cross-border payments landscape.
These collaborations not only benefit the involved institutions but also contribute to a more efficient and inclusive global financial system. As adoption grows, blockchain technology continues to demonstrate its potential to redefine how money moves around the world.