- Ripple signed a memorandum of understanding with VAR’s Riyad Bank to develop and evaluate digital, international transfer processes.
- A program for digital custody and asset tokenization will also be launched.
The cooperation with Ripple is part of the Saudi “Vision 2030” project, which envisages comprehensive digitalization of the national financial sector. While the United Arab Emirates is already considered a blockchain pioneer, Saudi Arabia is now also signaling increasing openness towards distributed ledger technology with this cooperation
Saudi Arabia open to financial innovation
In the center of the Cooperation There are three strategic fields of application:
- Cross-Border Payments: Ripple brings its experience with fast, cost-effective international transactions – an area that is particularly relevant for banks with high transaction volumes.
- Digital Asset Custody: Developing secure custody models for digital assets is a key issue for banks preparing to deal with tokenization and digital securities.
- RWA tokenization: The tokenization of real assets, such as real estate, bonds and funds, opens up new possibilities for liquidity, trading and transparency.
Riyad Bank is one of the largest banks in Saudi Arabia with over $130 billion TVL. Their innovation department “Jeel” was set up in 2023 and is responsible for the smooth integration of new technologies into existing banking processes.
Ripple is expanding its Middle East presence
Ripple has significantly expanded its activities in the Middle East in recent years. The company has several licenses in the VAR, including for the RLUSD stablecoin, which has now reached a circulation of over $1.3 billion. The XRP Ledger, Ripple’s decentralized infrastructure, recently surpassed $1 billion in tokenized assets, a sign of growing institutional usage.
Image created with AI using ChatGPT (DALL·E)
The partnership with Riyad Bank strengthens Ripple’s position as an infrastructure partner for banks and financial institutions in the Gulf region. It could serve as a model for further collaborations, particularly with regard to regulation, scaling and integration into existing TradFi banking processes.
The cooperation between Ripple and Riyad Bank shows that blockchain technology is increasingly being incorporated into the strategic planning of major banks in the Middle East. While Western markets often operate in a fragmented manner in terms of regulation, countries like Saudi Arabia rely on targeted pilot projects with established technology partners.
For Ripple, it is a further step into the role of global infrastructure provider for digital payments, custody and tokenization.
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