Zand has expanded its collaboration with Ripple to develop stablecoin and blockchain infrastructure supporting the country's digital economy strategy.
Following this announcement, the partnership aims to extend an existing payments collaboration between the two organisations. Under the agreement, Zand and Ripple will explore several initiatives, including enabling support for Ripple's RLUSD stablecoin within Zand's regulated digital asset custody services, developing direct liquidity solutions between the Zand AED stablecoin (AEDZ) and RLUSD, and issuing AEDZ on the XRP Ledger (XRPL).
Stablecoin infrastructure and regulatory framework
According to the official press release, AEDZ functions as the UAE's first regulated multi-chain AED-backed stablecoin operating on public blockchains. The stablecoin maintains one-to-one backing by AED reserves held in segregated and regulated accounts, with independently audited smart contracts and reserve attestations. RLUSD operates as an enterprise-grade stablecoin backed by USD deposits, short-term US government bonds, and cash equivalents, with monthly third-party attestations.
Moreover, the XRPL will provide the technical infrastructure for the expanded partnership, offering a public blockchain with integrated compliance, monitoring, and risk control mechanisms. The collaboration aligns with the UAE's Digital Economy Strategy, which targets doubling the digital economy's contribution to non-oil GDP by 2032.
According to market projections, the stablecoin sector could reach USD 4 trillion in market value in coming years, driven by increased transaction adoption, expansion of decentralised finance applications, and growing institutional participation.
The partnership builds on Ripple's existing presence in the Middle East and Africa region, where the company provides blockchain-based solutions across traditional and digital finance sectors. Zand operates as an AI and blockchain-powered digital bank within the UAE's regulatory framework.
All future initiatives under the partnership remain subject to applicable regulatory approvals and internal governance processes. The collaboration represents part of broader industry efforts to integrate stablecoin infrastructure with regulated financial services in the UAE market.
