Ripple Expands Zand Bank Deal to Support RLUSD Stablecoin

Ripple has expanded its partnership with UAE-based Zand Bank to support its RLUSD stablecoin. The new phase will connect Ripple’s USD stablecoin with Zand’s AED-backed stablecoin. It is known as AEDZ. The companies plan to work on custody services, liquidity bridges and new issuance on the XRP Ledger.

Ripple executive Reece Merrick shared the update on February 10. He said the two sides will explore several initiatives that combine both stablecoins. The move builds on their earlier payments partnership. It aims to strengthen digital finance in the region.

Earlier Partnership in the UAE

Ripple first partnered with Zand Bank in 2025. With the aim to support blockchain based cross border payments. Through, the deal focused on improving settlement speed and reducing transaction costs for businesses. Zand is one of the UAE’s digital banks. It runs an AI-powered platform and holds a strong credit rating. The bank focuses on services tied to the digital economy and tokenized finance. 

In late 2025, Zand bank also launched AEDZ. This stablecoin is backed by the UAE dirham. It is designed for use on public blockchains. The project marked one of the first regulated AED stablecoins in the region.

RLUSD Gains Regulatory Support

Ripple’s RLUSD stablecoin has also gained traction in the UAE. Regulators in Abu Dhabi and Dubai approved the token for certain licensed activities in late 2025. These approvals allowed firms to use RLUSD within regulated environments.

The stablecoin has grown steadily since its launch. It crossed major supply milestones and secured several institutional integrations. Now, many firms use it for settlement and liquidity operations. Specifically, Ripple positions RLUSD as a tool for faster and cheaper payments. It runs on blockchain rails, thus allowing near-instant settlement at lower cost.

What the New Collaboration Includes

The expanded partnership will focus on several key areas. First, Zand Bank plans to support RLUSD within its regulated digital asset custody services. Specifically, this will allow institutions to hold the stablecoin in a compliant environment. Second, the two sides will explore direct liquidity between RLUSD and AEDZ to make cross currency transfers faster and simpler for businesses.

Third, Zand Bank may issue its AEDZ stablecoin directly on the XRP Ledger. That step would connect the token more closely with Ripple’s ecosystem. The companies say these moves will improve settlement speed and operational efficiency. They also expect to unlock new tokenization and cross border payment use cases.

A Step Toward Stablecoin-Based Finance

The partnership reflects a larger shift in the financial sector. In fact, stablecoins are becoming key tools for real-world payments rather than just crypto trading. Simultaneously, the UAE has taken an active role in supporting digital asset innovation. As a result, several institutions in the region now explore tokenized payments and on-chain finance.

By linking RLUSD and AEDZ, Ripple and Zand Bank hope to build a stronger bridge between traditional finance and blockchain systems. The project could also help speed up stablecoin adoption across the Middle East and nearby markets. For now, the expanded deal marks another step toward practical, stablecoin based financial services.

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