Zand Expands Ripple Partnership to Scale Global Stablecoin Adoption

Zand, the UAE’s first AI- and blockchain-powered digital bank, has officially expanded its partnership with Ripple. The collaboration focuses on the synergy between Zand’s AEDZ (a dirham-pegged stablecoin) and Ripple’s RLUSD (a US dollar-pegged stablecoin).

As per the announcement, by leveraging the XRP Ledger (XRPL), the two entities are building a bridge between traditional fiat stability and the efficiency of on-chain finance.

A union of banking and blockchain

The partnership involves Zand Bank, led by CEO Michael Chan, and Ripple, represented by Reece Merrick, Managing Director for the Middle East and Africa. Zand operates as a fully regulated digital lender in the United Arab Emirates (UAE), while Ripple provides the underlying blockchain infrastructure.

Additionally, the ecosystem is bolstered by Ripple’s recent custodial collaborations with Swiss-based Securosys, ensuring that the cryptographic keys for these assets are managed with hardware-security-module (HSM) level protection.

The partners are exploring direct liquidity channels between these two currencies, allowing for seamless, near-instant cross-border and local settlement within a regulated banking structure.

The primary focus is the UAE, a region that has rapidly become a global hub for virtual asset regulation. By deploying these solutions on the XRP Ledger, a public blockchain equipped with appropriate risk controls and compliance monitoring, Ripple and Zand are positioning the UAE as a leader in “on-chain” traditional finance.

The AEDZ and RLUSD integration

The core of the initiative is the integration and issuance of stablecoins. AEDZ is the UAE’s first regulated multi-chain stablecoin, fully backed 1:1 by AED reserves. RLUSD is an enterprise-grade stablecoin backed by US dollar deposits and treasuries.

The official expansion was announced on February 10, 2026, building upon an initial payments collaboration established in May of the previous year. This timeline reflects the accelerating pace of institutional blockchain adoption in the region.

Why regulation matters

The global stablecoin market is projected to surge to $4 trillion. This partnership is a strategic response to that growth, aiming to provide “ghost-free,” fully audited, and transparent financial tools.

For the UAE, it is a critical component of the Digital Economy Strategy, which aims to diversify the economy away from oil. As traditional finance moves on-chain, having a regulated bank (Zand) and a proven tech provider (Ripple) ensures that both businesses and governments can engage with digital assets without sacrificing security.

Implementation involves three technical pillars: Custody, Issuance, and Liquidity. Zand will use its regulated framework to custody RLUSD, while the XRPL will serve as the issuance layer for AEDZ. Through Ripple’s partnership with Securosys, institutions can deploy CloudHSM capabilities to manage these assets securely, removing the friction typically associated with managing complex blockchain “tech stacks.”

The expansion of Ripple’s footprint in the UAE is also viewed as a supportive backdrop for the long-term utility of XRP, which recently traded at $1.41. As stablecoins become a core pillar of regulated financial markets, the infrastructure provided by the XRPL is proving to be a versatile foundation for the next generation of financial services.

Unlike traditional banking, where a mistaken transfer can often be reversed by a bank teller, blockchain transactions are generally immutable. Sending AEDZ or RLUSD to the wrong alphanumeric address or an incompatible network (e.g., sending XRPL-based tokens to an Ethereum address) usually results in a permanent loss of funds. Users must be hyper-vigilant when entering amounts; once the “Confirm” button is pressed, the smart contract executes immediately.

Also Read: Institutions Gain Access to Hyperliquid Derivatives via Ripple Prime

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