Zand, the UAE’s AI and blockchain-powered digital bank, has entered into a strategic partnership with Ripple to advance the region’s digital economy through new stablecoin and blockchain solutions.
The collaboration will focus on innovative initiatives powered by Zand’s AED stablecoin (AEDZ) and Ripple’s USD stablecoin (RLUSD).
Bridging currencies on-chain
Building on an earlier payments collaboration, the two entities will explore several key initiatives. These include enabling support for RLUSD within Zand’s regulated digital asset custody services and investigating the potential for direct liquidity solutions between AEDZ and RLUSD.
Crucially, the partnership will also explore the issuance of AEDZ on the XRP Ledger (XRPL), leveraging the public blockchain’s compliance and risk controls.
Michael Chan, CEO of Zand, commented on the strategic potential of the move: “We believe that leveraging stablecoins, blockchain technology, and tokenization, can unlock powerful new use cases as traditional finance moves on-chain. Our partnership with Ripple represents a significant step forward in the growth of the digital asset ecosystem, and has the potential to revolutionize how both governments and businesses engage with trusted blockchain solutions in the UAE.”
Stablecoin specifics
The partnership aligns with the UAE’s broader Digital Economy Strategy, which aims to double the digital economy’s contribution to non-oil GDP by 2032. Stablecoin technologies are viewed as integral to this goal, with market projections suggesting the global stablecoin market could grow to $4trillion in the coming years.
Reece Merrick, managing director, Middle East and Africa at Ripple, added: “Our expanded partnership with Zand underscores our commitment to the UAE’s pioneering digital economy… We look forward to driving the adoption of stablecoins and tokenized assets in the region, creating a robust foundation for the next generation of financial services.”
Zand, which is licensed by the Central Bank of the UAE, positions itself as a bridge between traditional finance (TradFi) and decentralized finance (DeFi), serving corporate, institutional, and wealth clients.
Both companies noted that future initiatives arising from this partnership remain subject to applicable regulatory approvals.