Written by: Weilin, PANews
While reaching a settlement with the U.S. Securities and Exchange Commission (SEC), Ripple is rapidly restarting its global expansion in the Middle East, with Dubai becoming a key location for its tokenization of real-world assets (RWA).
Recently, the Ripple-supported blockchain XRP Ledger was selected as the underlying blockchain network for Dubai's real estate tokenization project, demonstrating Ripple and XRP's development in government and enterprise collaboration, cross-border settlement, and stablecoin infrastructure, which is gradually transforming into the company's business breakthrough direction.
Meanwhile, on May 29, Nasdaq-listed energy company VivoPower International announced the completion of a $121 million private placement, transforming into a crypto asset reserve strategy centered on XRP. Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud led a $100 million investment, showing the Middle Eastern capital's recognition and bet on the XRP ecosystem.
XRP Ledger Becomes the Public Chain for Dubai's First Government Property Tokenization Project
On May 26, the Dubai Land Department (DLD) announced a collaboration with asset tokenization platform Ctrl Alt to launch the Middle East's first government-led real estate tokenization project, PRYPCO. Supported by the Dubai Virtual Asset Regulatory Authority (VARA) and the Dubai Future Foundation, the project plans to issue real estate assets on-chain through the PRYPCO Mint platform on XRP Ledger (XRPL), with a minimum investment threshold of 2,000 dirhams (approximately $545).
This project is a crucial part of Dubai's "Real Estate 2033 Strategy," aiming to achieve a real estate tokenization market of 60 billion dirhams (approximately $16.3 billion) by 2033. Ctrl Alt has obtained broker and issuer licenses from VARA and claims to have completed asset tokenization of nearly $295 million.
Ripple, a major contributor and promoter of XRPL, has been assigned the role of technical provider for asset on-chain issuance with government support, representing the protocol's expansion from cross-border payments to RWA asset support. XRPL uses the Ripple Protocol Consensus Algorithm (RPCA), which does not require energy-intensive mining, enabling second-level transaction settlement.
XRPL is also actively advancing its stablecoin ecosystem. SG-FORGE has announced the launch of EURCV, pegged to the euro, on XRPL in 2025; Braza Group will also introduce BBRL, a stablecoin linked to the Brazilian real, on XRPL, laying a solid foundation for multi-asset and multi-scenario tokenization.
Simultaneously, XRP has gained favor from Middle Eastern capital. On May 29, Nasdaq-listed energy company VivoPower International (VVPR) announced the completion of a $121 million private placement, transforming into a crypto asset reserve strategy centered on XRP. Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud led a $100 million investment, and former SBI Ripple Asia executive Adam Traidman will serve as the chairman of the advisory committee. According to SEC filings, the company plans to issue 20 million common shares at $6.05 per share.
Accelerating Middle East Strategy: Obtaining DFSA License and Acquiring Brokerage Firm Hidden Road
Ripple's focus on the Middle East market is no coincidence. As early as November 2020, Ripple established its regional headquarters in the Dubai International Financial Centre (DIFC), stating that this move was considering the unclear U.S. crypto regulatory policies and potential exit from the U.S. In December of the same year, the SEC first accused Ripple CEO Brad Garlinghouse and co-founder Chris Larsen of conducting unregistered securities offerings by selling Ripple's digital token XRP since 2013. The SEC claimed that Ripple raised $1.3 billion through these alleged securities sales, while Ripple argued that XRP is not a security. After years of evolution and development, the Middle East region now accounts for approximately 20% of Ripple's global customers.
In March this year, Ripple obtained a regulatory license from the Dubai Financial Services Authority (DFSA), becoming the first compliant blockchain payment provider in DIFC, officially conducting compliant crypto cross-border payment business in the UAE. In May, Ripple announced collaborations with UAE digital bank Zand Bank and fintech company Mamo, embedding Ripple's cross-border payment system into their financial service systems to support 24/7 cross-border settlement. Zand Bank also plans to launch a stablecoin pegged to AED to enhance local digital payment capabilities.
The stablecoin RLUSD is also enriching Ripple's business ecosystem and supporting the company's business expansion. RLUSD not only provides up to 8%-9% annual percentage rate (APR) on Aave, quickly attracting around $150 million in funds, but also launched on Euler Finance on May 29, allowing users to directly lend, borrow RLUSD, and use it as collateral. Currently, the supply APY for RLUSD on Euler is as high as 22.05%. PANews previously reported that Ripple recently collaborated with Chainlink to enhance RLUSD's utility in the DeFi field; Ripple also partnered with Revolut and Zero Hash to expand RLUSD's market coverage; RLUSD was listed on Kraken and integrated into its payment solution Ripple Payments, used in cross-border payment processes for customers like BKK Forex and iSend.
Beyond payment services, Ripple is also accelerating its layout in brokerage, custody, and tokenization. On April 8 this year, crypto payment company Ripple announced plans to acquire major brokerage firm Hidden Road for $1.25 billion, aiming to expand its services for institutional investors. CEO Brad Garlinghouse stated, "Ripple needs to ensure we have the appropriate infrastructure to attract and expand to a larger institutional group." The transaction will primarily be conducted in cash, XRP, and stocks, with completion expected in the coming months pending regulatory approval.
After the acquisition, Ripple will "inject billions of dollars in capital to provide instant scale and meet Hidden Road's primary brokerage business needs." Garlinghouse stated that the primary broker will integrate stablecoin RLUSD as collateral for its primary brokerage products and explore using XRP Ledger to "improve settlement efficiency".
According to public reports, Hidden Road plans to establish an office in Abu Dhabi. According to informed sources, the office will be led by partner James Stickland. Hidden Road has received a Principle of Approval (IPA) from the Abu Dhabi Global Market Financial Services Regulatory Authority (FSRA), and upon final approval, it can provide clearing and prime brokerage services to UAE institutional investors.
Sources say that after Hidden Road receives final regulatory approval, members of the Abu Dhabi Royal Family may join the board of its local entity.
Can "Tokenization-as-a-Service" Succeed? Ripple Regains Development Time Lost to SEC's "Hard Control"
Crypto lawyer supporting Ripple, John Deaton, says Ripple's acquisition of Hidden Road is not just a single expansion, but a forward-looking layout for DeFi and TradFi integration. He points out that Hidden Road processes over $3 trillion in transactions annually, serving more than 300 institutional clients, serving as a bridge connecting traditional capital and on-chain settlement.
Deaton believes that Ripple's "Ripple Custody" custody service, together with its payment and stablecoin system, constitutes a one-stop blockchain financial service platform. Its vision is to provide "Tokenization-as-a-Service" for financial institutions like banks, achieving a fully integrated process from asset tokenization, collateralized payment to clearing circulation.
According to Boston Consulting Group (BCG) predictions, the digital asset custody market size will exceed $16 trillion by 2030. In his view, Ripple is trying to seize this dividend by building the technical layer for global financial asset tokenization through XRP Ledger.
Another reason for Ripple's accelerated push in the Middle East is its latest developments in the U.S. domestic regulatory environment. On May 9, Ripple reached a settlement with the SEC, paying a $50 million fine and lifting some bans. The SEC also will not appeal the previous ruling, marking the end of this regulatory tug-of-war that has lasted since 2020.
Subsequently, on May 28, Ripple's Chief Legal Officer Stuart Alderoty submitted a supplementary letter to the SEC, emphasizing that XRP itself does not constitute a security and suggesting that most crypto assets should not be considered securities in secondary market trading, recommending that the SEC introduce a "safe harbor" mechanism to provide more operational compliance guidelines for the digital asset market.
Meanwhile, the approval of the XRP spot ETF is also progressing. On May 28, the SEC has officially initiated a review of examination of the WisdomTree XRP Fund application submitted the by Cboe BZX Exchange. If successfully approved, Ripple may usher in another growth point for capital and user inflow.
Overall, after years of fierce battle with the SEC with Rapidly reits leverutilizing the Middle East, a regulatory-friendly frontier. The XRP Ledger, as its technical hub, is undertaking multiple roles from payment infrastructure to stablecoin clearing and asset tokenization. If Ripple can successfully promote the "tokenization as a model, may become ground breaking free from regulatory shadows and achieving DeFDeFi and TradFi fusion and asset on-chain.
