Original Author: 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 blockchain tokenization project, demonstrating that Ripple and XRP's development in government-enterprise cooperation, cross-border settlement, and stablecoin infrastructure is gradually transforming into the company's business breakthrough direction.

At the same time, on May 29, Nasdaq-listed energy company VivoPower International announced the completion of a $121 million private placement financing, transitioning to a crypto asset reserve strategy centered around XRP. Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud led the investment with $100 million, indicating the recognition and bet of Middle Eastern capital on the XRP ecosystem.

XRP Ledger Becomes Dubai's First Government Real Estate Tokenization Project Public Chain

On May 26, the Dubai Land Department (DLD) announced a partnership with asset tokenization platform Ctrl Alt to launch the Middle East's first government-led real estate tokenization project, PRYPCO. The project is jointly supported by the Dubai Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation, aiming to achieve on-chain issuance of real estate assets on the XRP Ledger (XRPL) through Ctrl Alt's PRYPCO Mint platform, with a minimum investment threshold of 2,000 dirhams (approximately $545).

This project is a crucial part of Dubai's "Real Estate 2033 Strategy," which aims to achieve a real estate tokenization market of 60 billion dirhams (approximately $16.3 billion) by 2033. Ctrl Alt has obtained brokerage and issuer licenses issued by VARA and has stated that it has completed the tokenization of nearly $295 million in assets.

As a major contributor and promoter of XRPL, Ripple has been assigned the role of a technology provider for asset on-chain under government support, indicating that the protocol has expanded from cross-border payments to RWA asset support. XRPL employs the Ripple Protocol Consensus Algorithm (RPCA), which does not require mining, thus avoiding the energy-intensive mining process and enabling second-level transaction settlement.

XRPL is also actively promoting its stablecoin ecosystem on its network. SG-FORGE has announced plans to launch a euro-pegged stablecoin, EURCV, on XRPL in 2025; Braza Group will also launch a stablecoin pegged to the Brazilian real, BBRL, on XRPL, laying a solid foundation for building a multi-asset, multi-scenario tokenization infrastructure on XRPL.

Meanwhile, XRP has also gained favor among Middle Eastern capital. On May 29, Nasdaq-listed energy company VivoPower International (VVPR) announced the completion of a $121 million private placement financing, transitioning to a crypto asset reserve strategy centered around XRP. Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud led the investment with $100 million, 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 License from Dubai Financial Services Authority, Acquiring Brokerage Firm Hidden Road

Ripple's focus on the Middle Eastern market is not coincidental. As early as November 2020, Ripple established a regional headquarters in the Dubai International Financial Centre (DIFC), stating that this move was in response to the unclear U.S. crypto regulatory policies, which might lead to an 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 an unregistered securities offering by selling Ripple's digital token XRP since 2013. The SEC claimed that Ripple raised $1.3 billion through these so-called securities sales, while Ripple stated that XRP is not a security. After years of evolution and development, the Middle East now accounts for about 20% of Ripple's global clients.

In March of this year, Ripple obtained a regulatory license from the Dubai Financial Services Authority (DFSA), becoming the first compliant blockchain payment provider in DIFC, officially launching compliant crypto cross-border payment services in the UAE. In May, Ripple announced a partnership with UAE digital bank Zand Bank and fintech company Mamo to integrate Ripple's cross-border payment system into their financial services, supporting round-the-clock cross-border settlement. Zand Bank also plans to launch a stablecoin pegged to the AED to enhance local digital payment capabilities.

The stablecoin RLUSD is also enriching Ripple's business ecosystem, supporting the company's business expansion. RLUSD not only offers annualized returns (APR) of up to 8%-9% on Aave, quickly attracting about $150 million in funds, but also launched on Euler Finance on May 29, allowing users to directly lend, borrow RLUSD on the platform, and use it as collateral. Currently, RLUSD's annualized deposit yield (Supply APY) on Euler is as high as 22.05%. PANews previously reported that Ripple has recently partnered with Chainlink to enhance RLUSD's usability in the DeFi space; Ripple has also collaborated with Revolut and Zero Hash to expand RLUSD's market coverage; RLUSD was launched on the Kraken exchange and integrated into Ripple Payments for cross-border payment processes for clients like BKK Forex and iSend.

In addition to payment services, Ripple is also intensifying its layout in brokerage, custody, and tokenization. On April 8 of 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 right infrastructure to attract and expand to a larger group of major institutions." This transaction will primarily be conducted in cash, XRP, and stock. The acquisition is expected to be completed in the coming months, pending regulatory approval.

Once the acquisition is completed, Ripple will "inject billions of dollars in capital to provide immediate scale and meet the needs of Hidden Road's prime brokerage business." Garlinghouse stated that this major brokerage will integrate the stablecoin RLUSD as collateral for its prime brokerage products and explore using the XRP Ledger to "enhance settlement efficiency."

According to public reports, Hidden Road plans to establish an office in Abu Dhabi. Sources indicate that the office will be led by partner James Stickland. Hidden Road has obtained in-principle approval (IPA) from the Abu Dhabi Global Market Financial Regulatory Authority (FSRA), and once final approval is granted, it will be able to provide clearing and prime brokerage services to institutional investors in the UAE.

Insiders say that after obtaining 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 "Hard Control"

Crypto lawyer John Deaton, who supports Ripple, stated that Ripple's acquisition of Hidden Road is not just a single expansion but a forward-looking layout for the integration of DeFi and TradFi. He pointed out that Hidden Road processes over $3 trillion in transaction volume annually and serves more than 300 institutional clients, acting as a bridge connecting traditional capital with on-chain clearing.

Deaton believes that Ripple's "Ripple Custody" custody service, along with payments and stablecoin systems, forms 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, collateral payments to clearing circulation.

According to a forecast by the Boston Consulting Group (BCG), the digital asset custody market is expected to exceed $16 trillion by 2030. In his view, Ripple is trying to seize this opportunity by building the technological layer for global financial asset tokenization through the XRP Ledger.

Another reason for Ripple's accelerated push in the Middle East is its latest progress in the regulatory environment in the U.S. On May 9, Ripple reached a settlement agreement with the SEC, agreeing to pay a $50 million fine and lifting some restrictions. The SEC also decided not to appeal the previous ruling, marking the formal 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 arguing that most crypto assets should not be considered securities in secondary market trading, suggesting that the SEC introduce a "safe harbor" mechanism to provide more operational compliance guidance for the digital asset market.

At the same time, the approval process for the XRP spot ETF is also underway. On May 28, it was reported that the SEC has formally reviewed the WisdomTree XRP Fund application submitted to the Cboe BZX exchange. If approved, Ripple may see another influx of funds and users.

In summary, after years of battling with the SEC, Ripple is quickly redeploying its global strategy by leveraging the Middle East as a regulatory-friendly frontier. The XRP Ledger, as its technological hub, is taking on multiple roles from payment infrastructure, stablecoin clearing to asset tokenization. If Ripple can successfully promote the "Tokenization as a Service" model, the Middle East may become an important testing ground for it to escape regulatory shadows, achieve the integration of DeFi and TradFi, and bring assets on-chain.

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