Dubai Incorporates XRP Into Special Economic Zone

Paigambar Mohan Raj
Source: Blockchain News

The Dubai International Financial Centre (DIFC) has approved two crypto assets, XRP and Toncoi (TON), to be incorporated into its special economic zone. The two new assets are joining Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTE), which were approved earlier.

The move will allow over 4000 financial institutions and companies within the DIFC to utilize XRP and TON. According to Brad Garlinghouse, CEO of Ripple, “It’s refreshing to see the DFSA encourage the adoption and use of digital assets such as XRP to position Dubai as a leading financial services hub.”

Also Read: Shiba Inu vs. XRP: Which Will Gain More by Christmas 2023?

The Dubai Financial Services Authority (DFSA), which governs the DIFC, brought in crypto regulations two years ago, in October 2021. The approval of the two assets is the latest move by the Emirate to become a global crypto hub. Dubai has made incredible progress in the last few years to become more friendly towards crypto firms and assets.

Will XRP and TON rally from Dubai’s move?

The inclusion of the tokens has provided them with over 4000 institutions. Institutional money is usually a driver for any kind of market. Moreover, XRP was recently cleared of being a security by a US court. The ruling has made the token very attractive for many investors. However, the court ruling did say that the sale to institutional investors did fall under the “securities” definition. Therefore, it is unclear how it would impact the token’s price. Nonetheless, the development is still bullish for the project.

Also Read: Here’s How You Can Buy Bitcoin in Dubai Using Cash or an ATM

TON has also had a successful year so far. The token is up 5.3% over the last week and 9.6% in the monthly charts. Moreover, it is up by 37.4% over the previous year.

We may see an increase in adoption for both crypto assets as more institutions in Dubai dip their toes in them.