Ripple has expanded its strategic relationship with Zand Bank, strengthening collaboration around regulated stablecoin infrastructure and digital asset innovation in the UAE. The move signals growing institutional momentum behind blockchain-powered financial solutions as the country positions itself as a regional hub for compliant digital finance.
The enhanced partnership builds on an earlier payments collaboration between the two firms and now centres on expanding the use of stablecoins within a regulated banking framework. At the core of the initiative is the integration of Ripple’s US dollar-backed stablecoin, RLUSD, with Zand’s UAE dirham-pegged stablecoin, AEDZ, with both sides exploring liquidity connections between the two tokens to enable smoother cross-currency settlement between AED and USD.
As part of the broader roadmap, the companies are assessing the potential issuance of AEDZ on the XRP Ledger, Ripple’s public blockchain network known for its fast settlement capabilities and compliance-friendly design. Such a step would deepen on-chain interoperability and expand use cases across payments, treasury management, and cross-border transfers.
Zand’s AEDZ is structured as a fully backed stablecoin tied one-for-one to UAE dirham reserves held within regulated accounts and subject to independent oversight. RLUSD is similarly collateralised by US dollar deposits and high-quality liquid assets, with transparency measures in place to maintain institutional confidence. The collaboration aims to connect these stablecoin frameworks to bridge traditional banking and blockchain-based finance.
The development comes as the UAE continues to advance policies supporting responsible digital asset innovation. By embedding stablecoins within regulated financial institutions, the initiative moves beyond speculative trading use cases and toward practical applications such as institutional liquidity management, programmable finance, and streamlined cross-border settlement.
Executives from both organisations have described the partnership as a step toward building a trusted digital infrastructure that aligns with the UAE’s long-term digital economy ambitions. By linking fiat-backed digital currencies with regulated banking systems, Ripple and Zand are working to reduce friction in international payments while maintaining oversight and compliance standards.
As global financial institutions increasingly explore tokenised assets and blockchain rails, the Ripple-Zand collaboration reflects the UAE’s integration of emerging financial technologies within a structured regulatory environment. The initiative underscores the country’s ambition to balance innovation with governance as it shapes the next phase of digital asset adoption in the region.
