Ripple can now offer blockchain-based payment solutions to businesses across the UAE. The company reported that there is growing demand for cross-border payments throughout the Middle East, not just from crypto-native firms but also from traditional financial institutions. OKX also achieved a major milestone by obtaining a MiFID II license in the EU, allowing it to offer crypto derivatives to institutional investors. Meanwhile, Gemini expanded US dollar payment support for European institutions through a partnership with Bank Frick, simplifying fiat transactions for institutional clients.
Ripple Expands in the UAE
Ripple secured full regulatory approval from the Dubai Financial Services Authority (DFSA) to provide cross-border crypto payment services in the United Arab Emirates. The company announced on March 13 that it officially received its DFSA license, which allows it to operate in the Dubai International Financial Center (DIFC), a key financial hub with its own regulatory framework and tax policies. This milestone took place after Ripple’s in-principle approval, which it announced almost six months earlier on Oct. 1 of 2024, as part of its strategic push to establish a presence in the UAE’s digital asset ecosystem.
With the newly granted license, Ripple can now offer blockchain-based payment solutions to businesses across the UAE, targeting financial institutions looking for partners to integrate digital assets into real-world applications. The company reported growing demand for cross-border payments throughout the Middle East, not just from crypto-native firms but also from traditional financial institutions.
According to Ripple CEO Brad Garlinghouse, the UAE is well-positioned to benefit from technological and crypto innovation due to the region’s progressive regulatory landscape and its commitment to encouraging a supportive environment for digital asset companies. He also pointed out that the crypto industry is entering a period of expansion, driven by increasing regulatory clarity and institutional adoption around the world.
The approval makes Ripple the first blockchain-enabled payments provider to operate in DIFC’s free zone. DIFC CEO Arif Amiri welcomed the development, and stated that Ripple’s regulatory achievement reinforces Dubai’s role as a key player in the global fintech and digital asset landscape. Overall, the license allows Ripple to explore new opportunities across the UAE and the broader MENA region.
OKX Secures EU License to Offer Crypto Derivatives
OKX also recently reached a big regulatory milestone in the European Union by acquiring a Markets in Financial Instruments Directive (MiFID II) license that will allow the exchange to offer derivatives trading products to institutional investors across the region.
Crypto derivatives are financial contracts that derive their value from an underlying cryptocurrency, like Bitcoin or Ethereum. They allow traders to speculate on price movements without owning the actual asset. Common types of crypto derivatives usually include futures, options, and perpetual contracts.
The announcement was made on March 12 by OKX’s Europe CEO, Erald Ghoos. This development happened after the company’s earlier preauthorization under the Markets in Crypto-Assets (MiCA) framework, which allows it to provide localized services across 28 markets in the European Economic Area.
While MiFID II and MiCA serve different regulatory purposes, they complement each other in the crypto industry. MiFID II governs all financial instruments, including crypto derivatives, and requires platforms offering these products to register. Meanwhile, MiCA is focused on crypto-asset service providers dealing with cryptocurrencies that are not classified as financial instruments. OKX’s acquisition of the MiFID II license positions it to cater to institutional investors looking to engage in the growing crypto derivatives market.
OKX is headquartered in Seychelles, and is one of the world’s largest crypto exchanges by daily trading volume. On March 12 alone, the exchange processed close to $3.7 billion in spot trades, according to CoinMarketCap.
Crypto derivatives data (Source: CCData)
The demand for crypto derivatives surged as institutional interest in digital assets continues to rise. A report from CCData in November estimated the centralized crypto derivatives market at almost $7 trillion, which was an 89.4% increase compared to the previous peak in March of last year. A February 2024 report by EY shed some light on how decentralized finance is evolving and its role in shaping the crypto derivatives sector, despite regulatory scrutiny after the 2022 downturn that led to many high-profile bankruptcies.
Europe has been recognized as a key region for crypto derivatives trading. While derivatives trading is a focal point, the broader cryptocurrency market in Europe is also expanding. According to CME Group, Europe accounts for close to 18% of global cryptocurrency transaction volumes, making it the second-largest digital asset economy worldwide. OKX’s regulatory approval places it in a strong position to capitalize on this growing market.
Share of crypto transaction value by region (Source: CME Group)
Gemini Expands US Dollar Support for European Institutions
Gemini, the crypto exchange that was founded by Cameron and Tyler Winklevoss, is expanding its services for institutional clients in Europe by introducing US dollar payment support. The company announced a partnership with Liechtenstein-based Bank Frick to enable US dollar payment rails for institutional customers in the United Kingdom and Switzerland. There are also plans to extend the service to European Union institutional clients in the coming weeks. Additionally, the new functionality will be available to institutional users in Gibraltar, Jersey, Guernsey, and the Isle of Man.
With this feature, institutions will be able to deposit and withdraw US dollars from their Gemini accounts without fees and directly trade crypto with US dollars. This eliminates the need for conversion into British pounds or euros. Gemini’s head of Europe, Mark Jennings, pointed out that as institutional adoption of crypto continues to grow, having direct US dollar access will provide a much more seamless trading experience. To facilitate these transactions, Gemini will use Bank Frick’s xPulse instant transfer service, which offers a 24/7 fiat on-ramp for institutional customers with a Bank Frick bank account.
The functionality will be available directly on the Gemini platform through its own entities that hold Electronic Money Institution (EMI) licenses. Unlike many other crypto asset service providers that depend on partnerships for funding rails, Gemini’s regulatory-first approach allows it to offer direct funding solutions. It is still unclear how widespread US dollar trading support is among other European crypto exchanges, though Coinbase introduced similar trading pairs for European customers in 2019 before halting its Pro service in 2023.
(Source: Bloomberg)
The expansion comes amid reports that Gemini confidentially filed for an initial public offering in the United States. According to sources from Bloomberg, the IPO could take place as early as this year, and could involve major financial institutions like Goldman Sachs and Citigroup. Gemini has been pursuing a public listing since at least 2021 and previously explored a merger with the now-bankrupt venture capital firm Digital Currency Group.
This article was originally Posted on Coinpaper.com
