Ripple Secures First UAE Clients After DFSA License, But XRP Price Declines

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XRP News: Ripple Gets First UAE Clients After DFSA License, But XRP Price Falls

May 19, 2025 — Ripple, the company behind the cryptocurrency XRP, has taken a big step forward in its global growth. It has gained its first clients in the United Arab Emirates (UAE) after getting official approval to operate in the region. However, despite this positive news, the price of XRP has dropped — surprising many investors.

Ripple Approved to Operate in the UAE

Ripple recently received a license from the Dubai Financial Services Authority (DFSA), allowing it to offer digital payment services legally in Dubai. This license means Ripple can now provide services like On-Demand Liquidity (ODL), which helps companies move money across borders quickly and at low cost.

After getting the license, Ripple signed up its first clients in the UAE. While the names of these companies haven’t been shared yet, Ripple confirmed they are financial institutions in the Gulf region. These new partners will use RippleNet, Ripple’s payment network powered by XRP, to improve international money transfers. This is especially helpful in the Middle East, where cross-border payments are common.



Why Did XRP’s Price Drop After Good News?

Even though Ripple’s business news was positive, the price of XRP fell by nearly 3% within 24 hours of the announcement. This confused some investors who expected the price to go up.

Experts say there could be a few reasons:

“Buy the Rumor, Sell the News”: Some investors may have bought XRP earlier, expecting good news. When the news became official, they sold their XRP to take profits, which pushed the price down.

Crypto Market Dip: The overall crypto market has been slightly down. Bitcoin and Ethereum also dropped, so XRP may just be following the general trend.

Legal Issues in the U.S.: Ripple is still facing a legal case in the U.S. with the Securities and Exchange Commission (SEC). This ongoing issue makes some investors cautious, especially in the U.S., and may hurt XRP’s price.

Why the DFSA License Matters

Getting approval from the DFSA is a big win for Ripple. The UAE is becoming a global leader in blockchain and crypto, with clear rules that welcome digital asset companies. Other major crypto firms like Binance and Crypto.com are also expanding there.

Ripple’s entry into the Middle East is part of its larger goal to build a worldwide network using RippleNet and XRP. The region has a high number of money transfers and mobile banking users, which makes it a good fit for Ripple’s services.

Ripple’s CEO, Brad Garlinghouse, said the company wants to get similar licenses in other regions like Asia and Africa to keep growing globally.



What’s Next for Ripple and XRP?

Ripple’s new clients in the UAE show that its global plan is moving forward. Even though XRP’s price is down right now, the company’s efforts to create real-world use for its token could help in the long run.

Investors will be watching to see if Ripple can grow its network further and increase the actual use of XRP in cross-border payments.

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Conclusion:

Ripple’s success in Dubai and new business deals are good signs for its future. The drop in XRP’s price may just be short-term market behavior. As more countries accept crypto and Ripple continues to expand, the long-term outlook for XRP could still be strong.