Zand and Ripple have intensified their partnership to foster stablecoin and blockchain infrastructure that supports the UAE’s digital economy strategy.

This collaboration follows an initial agreement between the two entities, with a focus on broadening existing payment system collaborations. Under this new accord, Zand and Ripple are set to investigate multiple projects such as integrating RLUSD, Ripple’s stablecoin, into Zand’s secure digital asset holding services, establishing direct liquidity channels between the AEDZ (UAE dirham-backed stablecoin) and RLUSD, and listing AEDZ on the XRP Ledger.

Stablecoin Infrastructure and Regulatory Compliance

As per the official press release, AEDZ serves as the UAE’s inaugural regulated multi-chain stablecoin on public blockchains. It maintains a one-to-one ratio with AED reserves that are stored in segregated and regulated accounts, underwritten by independently reviewed smart contracts and reserve validations.

RLUSD functions as an enterprise-strength stablecoin backed by US dollars, short-term government bonds, and cash equivalents, with regular third-party verifications on a monthly basis. The technical backbone for this expanded partnership will be the XRP Ledger, which offers a public blockchain with integrated compliance, surveillance, and risk management tools.

This collaboration aligns with the UAE’s Digital Economy Strategy aimed at tripling the digital sector’s share of non-oil GDP by 2032. Market forecasts predict that the stablecoin market could reach USD 4 trillion within a few years, propelled by increased transactional use, the development of decentralized finance applications, and rising institutional engagement.

This partnership builds upon Ripple’s existing operations in the Middle East and Africa where they offer blockchain solutions across traditional and digital financial domains. Zand operates as an AI- and blockchain-driven digital bank within the UAE’s regulatory framework.

All future endeavors under this collaboration will proceed subject to relevant regulatory approvals and internal governance procedures. The partnership is a key component of broader industry initiatives aimed at aligning stablecoin infrastructure with regulated financial services in the UAE market.