Ripple’s Expansion in the Middle East
Ripple, having recently settled disputes with the U.S. Securities and Exchange Commission (SEC), is enhancing its foothold in the Middle East, positioning Dubai as a focal point for its strategy involving tokenized real-world assets (RWAs). This momentum has been underscored by the recent selection of the XRP Ledger, a blockchain promoted by Ripple, as the foundational technology for Dubai’s governmental real estate tokenization initiative.
The Dubai Land Department (DLD) announced a collaboration with asset tokenization platform Ctrl Alt to launch PRYPCO—the region’s first state-backed project in real estate asset tokenization, with support from the Dubai Future Foundation and the Dubai Virtual Asset Regulatory Authority (VARA).
PRYPCO will enable real estate asset issuance through the XRP Ledger, with a minimum investment requirement of 2,000 dirhams (approximately $545). This ambitious initiative aligns with Dubai’s broader “Real Estate 2033 Strategy,” envisioning a significant 60 billion dirham ($16.3 billion) market for tokenized real estate by 2033.
Significant Investment and Strategic Developments
In a notable development on May 29, VivoPower International, a company listed on Nasdaq, announced its completion of a significant $121 million private investment, marking its transition toward a strategy centered around crypto asset reserves, particularly XRP. Led by Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, the investment of $100 million highlights the increasing interest from Middle Eastern investors in the XRP ecosystem.
The XRP Ledger’s adoption reflects Ripple’s evolution from its original focus on cross-border payments to a more expansive role that now includes support for RWAs. Ripple employs the Ripple Protocol Consensus Algorithm (RPCA), bypassing the energy-intensive mining process to achieve transaction settlement in mere seconds. The platform is also seeing growing support in the stablecoin sector; SG-FORGE is poised to launch EURCV—a euro-pegged stablecoin—on XRPL by 2025, while Braza Group plans to introduce BBRL, pegged to the Brazilian real.
Regulatory Compliance and Future Plans
Ripple’s deepening commitment to the Middle Eastern market has historical roots; since opening its regional headquarters in the Dubai International Financial Center (DIFC) in November 2020, Ripple has navigated a landscape marked by uncertainty over U.S. crypto regulations. Following the SEC’s allegations against Ripple executives for unregistered securities offerings related to XRP, the company has intensified its Middle East operations, accounting for around 20% of its worldwide clientele.
In March of this year, Ripple obtained a regulatory license from the Dubai Financial Services Authority (DFSA), becoming the first blockchain payment provider compliant in DIFC. Furthermore, partnerships with UAE digital bank Zand Bank and fintech company Mamo are set to integrate Ripple’s payment solutions into their operations, facilitating continuous cross-border payments and the potential launch of a local stablecoin pegged to the UAE dirham.
Broader Strategy and Market Opportunities
Ripple continues to broaden its scope beyond payments by targeting the brokerage and custody sectors. A significant move was announced on April 8, with Ripple’s intent to acquire brokerage firm Hidden Road for $1.25 billion, aimed at enhancing services tailored to institutional investors. This acquisition will provide Ripple with the necessary infrastructure to engage large institutions effectively, pending regulatory approval, and is expected to be finalized soon, with Hidden Road focusing on establishing operations in Abu Dhabi.
In light of these advancements, there is optimism surrounding Ripple’s ability to leverage the Middle East as a launchpad for its “Tokenization as a Service” model, integrating traditional finance with decentralized finance (DeFi). Projections by the Boston Consulting Group suggest that the digital asset custody market is anticipated to surpass $16 trillion by 2030—an opportunity Ripple aims to capture through the XRP Ledger.
Following the resolution of its regulatory challenges in the U.S. with the SEC, Ripple is now focusing on expanding its global strategy and utilizing the Middle East’s progressive regulatory environment to test its tokenization framework thoroughly. Should Ripple’s efforts succeed, the Middle East could emerge as a pivotal center for regulatory-friendly digital asset innovation, potentially easing the path to unified finance systems that bridge traditional and decentralized finance landscapes.
