- This would allow easy conversion between USD and AED for payments and online finance.
- Zand Bank is establishing itself as a key licensed hub for digital assets in the UAE.
- The deal expands on an earlier cooperation between Ripple and Zand Bank.
Ripple, the company behind the XRP Ledger (XRPL), has announced a deeper partnership with the UAE digital bank Zand Bank. The goal is to connect Ripple’s dollar stablecoin, RLUSD, with Zand Bank’s upcoming dirham stablecoin, AEDZ, both of which will run on the XRP Ledger network.
This connection would allow easy conversion between US dollars and UAE dirhams for payments and online finance.
Zand Bank is establishing itself as a key licensed hub for digital assets in the UAE, using a secure and regulated blockchain and storage services to support real-world uses for digital currency.
The deal expands on an earlier cooperation between Ripple and Zand Bank, as part of Ripple’s larger plan to bring stablecoins and blockchain payment technology to regulated banks across the Middle East.
RLUSD and AEDZ
RLUSD is a US dollar-pegged stablecoin fully backed 1:1 by USD deposits, short-term government bonds, and cash-like assets. It’s built for banks and financial companies, with regular checks and compliance features to meet financial rules.
Furthermore, RLUSD is officially approved for use in important financial hubs in Abu Dhabi and Dubai (Abu Dhabi Global Market (ADGM) and Dubai’s DIFC), which is a rare achievement for a stablecoin.
On the other hand, AEDZ is a planned dirham-pegged token backed 1:1 by UAE dirham reserves and held by Zand Bank. Its goal is to make sending and receiving digital payments in the UAE and nearby areas stable and easy, using the local currency.
Together, these two stablecoins are expected to create easy pathways for conversions between US dollars and UAE dirhams, especially to help companies with international payments and other crypto-based finance needs.
Ripple’s recent upgrades to its custody platform (which includes better hardware security and new compliance features) make it even more attractive to banks and companies looking for a secure, rules-compliant crypto solution.
The UAE, particularly its major financial centers, has been a world leader in bringing regulated crypto and digital assets into the traditional banking system. Ripple’s expanded partnership with Zand Bank fits right into this national effort to make moving money more modern and efficient, in addition to getting banks to use more blockchain technology.
Related: Ripple Custody Partners With Figment to Offer Institutional Staking
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Source: https://coinedition.com/ripple-expands-zand-bank-ties-to-bridge-usd-and-dirham-stablecoins/
