A blockchain payments firm has been granted a regulatory license by the Dubai Financial Services Authority (DFSA), marking a significant milestone as it becomes the first digital asset-enabled payments provider authorized to operate within the Dubai International Finance Centre (DIFC). This approval is not only the company’s initial license in the Middle East but also enables the provision of regulated cryptocurrency payment services to businesses throughout the United Arab Emirates (UAE), further solidifying its presence in an area that contributes approximately 20% of its global customer base.
The acquisition of this license is a part of the company’s strategy that commenced in the Middle East late last year. In October, it had previously secured an in-principle license to initiate cross-border payment services in the region. The current approval indicates a growing interest in cryptocurrency and underscores the increasing regulatory clarity globally, along with a notable uptick in institutional engagement within the industry.
Research indicates a robust appetite for blockchain solutions in the region, highlighted by a survey conducted in 2024 which revealed that 64% of finance leaders in the Middle East and Africa are prioritizing quicker payments and settlement times as the main advantages of blockchain technology. Such insights suggest a significant potential for blockchain-based payment solutions.
The timing of this license coincides with the UAE’s continuous efforts to rebrand itself as a global hub for cryptocurrency innovation. With an extensive international trade market exceeding $400 billion, the UAE has drawn interest from both conventional financial institutions and blockchain-oriented businesses exploring alternatives to traditional cross-border payment methods. Authorities in the region see this milestone as an opportunity to further enhance innovation and foster economic growth, emphasizing that it not only illustrates a commitment to attracting digital finance but also opens pathways for tapping into new growth avenues.
Since the establishment of its regional headquarters in DIFC in 2020, the firm has significantly expanded its operations within the Middle East. More than 82% of financial leaders in the area have expressed confidence in integrating blockchain technology into their operational frameworks, reflecting the readiness to adopt such innovations in financial transactions.
The license is viewed as a pivotal step that will enable the company to cater more effectively to the escalating demand for faster, cost-effective, and transparent cross-border transaction solutions, especially in one of the biggest markets for cross-border payments. This approval enhances the firm’s regulatory portfolio, which now boasts over 60 licenses globally, including approvals from key financial authorities in Singapore, New York, and Ireland, among others.
Additionally, the company has introduced its RLUSD stablecoin, which has successfully reached a market capitalization of over $130 million since its launch on global exchanges in late December. The firm anticipates further adoption of this stablecoin in the UAE, as businesses increasingly seek instantaneous settlement solutions that bypass traditional banking processes.
Overall, this development signifies not only a key opportunity for the company in the Middle East market but also reflects the broader trend of regulatory acceptance and integration of blockchain technologies within the financial ecosystem, paving the way for more innovative and efficient payment systems in the region and beyond. The embrace of cryptocurrency solutions highlights the ongoing transformation in financial transactions and the potential for significant advancements in speed, cost, and transparency.