Jeel, tech arm of Riyad Bank and Ripple to apply blockchain in KSA financial sector

Saudi Arabian, Jeel, the innovation and technology arm of Riyad Bank, and Ripple, a financial technology company that offers crypto solutions for businesses, will be exploring the application of advanced blockchain in developing secure, efficient, and transparent cross border payments, as well as potential use cases for digital asset custody and tokenization.

As per the press release, Jeel and Ripple will examine how blockchain enabled payment corridors can enhance international remittance, as well as evaluate the frameworks for digital asset custody both in terms of regulations as well as operational standards.

In addition, the companies will jointly develop proofs-of-concept within Jeel’s regulatory sandbox to test Ripple’s technologies in a controlled, compliant environment. These efforts are expected to contribute to the Kingdom’s fintech sector by demonstrating scalable and interoperable digital financial infrastructure

“This partnership with Ripple reflects our strategy of using the Jeel Sandbox to responsibly explore next-generation financial infrastructure,” said George Harrak, CEO of Jeel. “By combining regulated experimentation with global blockchain expertise, we are building the foundations to evaluate scalable use cases that enhance cross-border payments and digital asset capabilities in line with the Kingdom’s long-term digital ambitions.”

This partnership integrates new blockchain-driven concepts into Jeel’s broader technology blueprint while supporting Riyad Bank’s ambitions to evaluate next-generation digital financial services.

Reece Merrick, Managing Director, Middle East and Africa at Ripple added, “ We are committed to demonstrating how Ripple’s enterprise-grade digital assets technology can unlock significant efficiencies in areas like cross-border payments, aligning directly with Saudi Arabia’s goal of building a world-leading, competitive fintech ecosystem.”

Ripple will gain strategic access to Saudi Arabia’s fast-growing fintech landscape through Jeel’s sandbox and institutional network. It also offers Ripple the ability to showcase its enterprise-grade blockchain infrastructure in a highly regulated and innovation-driven environment.

Saudi Minister of Municipalities announced that stablecoins will be introduced in KSA

Ripple’s entrance into Saudi Arabia’s financial sector comes months after an interview on Bloomberg Sharq as well as in his opening speech during the Fortune Global Forum in Riyadh KSA, Saudi Minister of Municipalities and Housing Majid Al-Hogail mentioned the utilization of stablecoins as a payment tool for global investors in the property sector. He stated, ” We look forward to introducing stablecoins in the Kingdom soon, in partnership with the Capital Market Authority and the Saudi Central Bank.”

According to the Minister this step would open up the market to foreign investment on a wider front, noting that stablecoin market capital exceeded $300 billion one of the fastest growing of all digital currency assets globally. He also mentioned it makes up two thirds of all digital currency transactions on the blockchain.