- The operator of XRP made a big move in the Persian Gulf.
- Ripple says 20% of its client base is in the Middle East.
- Binance did its own deal in the UAE on Wednesday.
One day after Binance sealed a deal with the United Arab Emirates, Ripple has formed its own relationship with the wealthy tax haven in the Persian Gulf.
Ripple, which facilitates cross-border payments and operates the XRP token, announced Thursday that it had received approval to provide regulated crypto payments and services in Dubai’s International Financial Centre.
The move further solidifies the UAE as a global crypto hub just as President Donald Trump is attempting to lure digital assets firms to the US.
Special zone
Dubai, located in the UAE, operates as a special economic zone called the Dubai International Finance Centre. It uses relaxed regulations and zero taxes on corporate income, personal income, and capital gains taxes to attract entrepreneurs.
Ripple CEO Brad Garlinghouse said the UAE is well positioned to accommodate the expanding crypto industry.
On Wednesday, Binance, the world’s biggest crypto exchange, announced it was receiving $2 billion from MGX, a UAE government-linked AI investment firm.
Chanpeng Zhao, the largest shareholder of Binance, is reported to live in the country’s capital of Abu Dhabi.
Legal action
In recent years, Garlinghouse and other Ripple executives were sued by the Securities and Exchange Commission for failing to comply with US securities laws.
This year, the SEC has dismissed some of its actions against Ripple as the Trump administration ends a crackdown on the industry. The company is still involved in one case.
Last November, Ripple’s token, XRP, led a broad rally after Trump won the election. The token’s value soared more than six times between November 5 and January 18, according to CoinGecko.
Along with the rest of crypto, XRP has tumbled as Trump’s trade war has rocked the capital markets. The Ripple-linked asset has lost a third of its value since its peak in January.
Andrew Flanagan is a markets correspondent for DL News. Have a tip? Reach out to aflanagan@dlnews.com.