Ripple Labs, the blockchain pioneer that has finally overcome the SEC v. Ripple debacle, is partnering with Dubai’s DIFC innovation hub to accelerate blockchain and digital assets in the United Arab Emirates.
Ripple has committed one billion XRP to accelerate development and global use cases on the XRP Ledger (XRPL), a decentralized, layer 1 blockchain. Since the announcement of the 1B XRP Fund in late 2021, Ripple has provided financial, technical, and business support to over 160 teams across 47 countries. These efforts have spanned various use cases, including decentralized finance (DeFi), Real World Assets (RWA), and other innovative solutions.
XRP approved for use within Dubai’s DIFC
The Dubai International Financial Centre (DIFC) is home to the largest innovation hub in the MENA region. It hosts over 1,000 growth-stage tech firms, innovation companies, digital labs, venture capital firms, regulators, and educational entities. Ripple’s partnership with the DIFC Innovation Hub aims to drive blockchain and crypto adoption among early-stage companies and scale-ups, as well as to introduce these technologies to traditional large strategic institutions.
In November 2023, the DIFC approved XRP for use within the Centre, allowing licensed virtual asset firms to incorporate XRP into their virtual asset services. Ripple’s Middle East and Africa (MEA) regional office is located within the DIFC, strengthening its presence in the region.
Ripple has pioneered solutions to the multi-trillion-dollar challenges of cross-border payments by utilizing blockchain and crypto at scale. The company’s payment and custody infrastructure has seen continuous global growth, with payment solutions available in over 80 payout markets, covering more than 90% of the global foreign exchange market. Ripple has also introduced live custody offerings in 20 jurisdictions and recently announced plans to launch a USD-backed stablecoin to enhance liquidity on the XRPL. Moreover, Ripple has supported improvements to the XRPL, including the recent AMM Amendment.
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“Regulatory clarity for licensed firms to offer virtual asset services”
Brad Garlinghouse, Chief Executive Officer at Ripple, said: “The UAE is one of the most advanced jurisdictions globally when it comes to offering regulatory clarity for licensed firms to offer virtual asset services and fostering an environment in which the next generation of financial innovation can flourish. Our partnership with the DIFC Innovation Hub promises to drive the adoption of blockchain technology in the region as the XRPL continues to be a leading blockchain for the region’s start-ups and scaleups building real use cases.”
Arif Amiri, DIFC Chief Executive Officer, commented: “Today marks another milestone in DIFC’s ongoing journey to help facilitate growth and equip the next generation of leaders with everything they need to succeed. The Ripple collaboration further cements DIFC’s role as a leading global hub for talent, technology and innovation, as we continue to enhance our ecosystem powered by a world-class regulatory jurisdiction, to drive the future of finance.”
Mohammad Alblooshi, Chief Executive Officer, DIFC Innovation Hub, added: “We are thrilled to literally see the Ripple effect manifesting itself at the DIFC Innovation Hub for the benefit of our growing community of FinTech and Innovation firms. The agreement will also ensure that innovative development in the blockchain and cryptocurrency sectors have the funding and industry-leading support required to turn new ideas into a tangible and impactful reality”.
Reece Merrick, Managing Director, Middle East and Africa at Ripple, said: “The UAE’s progressive approach to fintech, coupled with Ripple’s billion XRP developer fund, creates a fertile ground for innovation in the UAE. Our new collaboration with the DIFC will empower regional talent to build the next generation of financial solutions on the XRP Ledger, solidifying the UAE’s position as a leading fintech hub globally.”
SEC v. Ripple ends with $125 million fine
Yesterday, a US court fined $125 million as part of the SEC v. Ripple lawsuit. A federal judge has ordered the XRP issuer to pay the fine after finding that its institutional sales violated federal securities laws.
“The SEC’s motion for remedies and the entry of final judgment is granted in part and denied in part,” stated the filing signed by Judge Analisa Torres. “The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150.”
District Judge Analisa Torres, of the Southern District of New York, imposed the civil penalty on Wednesday following a previous ruling that 1,278 institutional sale transactions by Ripple breached securities regulations.
The penalty is well below the $1 billion in disgorgement and prejudgment interest, plus $900 million in civil penalties, initially sought by the SEC.
In her decision, Judge Torres reiterated her earlier stance that Ripple’s programmatic sales of XRP to retail clients through exchanges did not violate federal securities laws. The SEC’s attempt to appeal this aspect of the ruling during the ongoing case was unsuccessful.
The court’s order includes an injunction against future violations of federal securities laws by Ripple. Judge Torres said that while she is not concluding that Ripple has committed any violations post-lawsuit, there is a likelihood of future infractions. She stated, “The Court finds that Ripple’s willingness to push the boundaries of the Order evinces a likelihood that it will eventually (if it has not already) cross the line.”
As part of the injunction, Ripple must file a registration statement if it intends to sell any securities. The SEC is expected to appeal the July 2023 ruling now that the final judgment has been issued, following the judge’s previous denial of the SEC’s motion for an interlocutory appeal.
A U.S. federal court judge ruled in July that a civil securities lawsuit against Ripple Labs can proceed, denying the company’s bid for summary judgment in a case alleging its CEO, Brad Garlinghouse, violated California securities laws.
