Ripple, the issuer of the RLUSD stablecoin, has entered into a memorandum of understanding with Jeel, the innovation-focused subsidiary of Riyad Bank, to examine how blockchain technology could be applied across Saudi Arabia’s financial infrastructure. The agreement reflects a shared interest in evaluating distributed ledger systems that may enhance efficiency, transparency, and scalability within the Kingdom’s banking and payments ecosystem.
Ripple’s regional leadership indicated that the company aims to demonstrate how its enterprise-grade digital asset solutions could improve processes such as cross-border transactions. This objective aligns with Saudi Arabia’s broader ambition to establish a globally competitive fintech environment under its Vision 2030 strategy. By testing practical blockchain use cases, the collaboration seeks to determine how advanced digital asset technologies could support financial modernization efforts in the region.
Use Cases in Payments, Custody, and Tokenization
Under the agreement, Ripple and Jeel plan to jointly design and pilot several financial technology applications. These initiatives are expected to include cross-border payment solutions and digital asset custody services. For banks and financial institutions across the Gulf region, blockchain-based settlement systems are increasingly viewed as viable due to their speed, transparency, and ability to reduce operational friction.
The exploratory work may also extend to tokenization, as financial institutions worldwide continue to assess the conversion of traditional assets into digital representations. Saudi policymakers have already identified financial innovation as a central pillar of Vision 2030, with initiatives spanning open banking, digital payments, blockchain adoption, and AI-driven financial services. Within this policy framework, tokenization and distributed ledger technology are gaining attention as tools that could broaden market access and improve asset liquidity.
Jeel’s Role in Building a Fintech Ecosystem
Jeel was established as Riyad Bank’s innovation and technology arm to advance long-term digital initiatives and foster partnerships across the fintech sector. In September, the subsidiary partnered with FinTech Saudi to roll out digital innovation programs aimed at supporting startups and established firms alike. This collaboration resulted in the launch of the Jeel Sandbox, a technical environment designed to help fintech companies develop, test, and seek licensing for new solutions.
نعلن في جيل عن شراكتنا مع شركة ريبل لاستكشاف تطبيقات متقدمة تهدف إلى تحسين سرعة وكفاءة المدفوعات.
وتركز هذه الشراكة على دراسة حالات استخدام حفظ الأصول الرقمية، إلى جانب تطوير نماذج أولية ضمن البيئة التنظيمية التجريبية لجيل، دعمًا لمستهدفات #رؤية_السعودية_2030 pic.twitter.com/WzUZrBQPYV— Jeel (@Jeelmovement) January 26, 2026
The sandbox enables participants to experiment with digital asset trading services while remaining within Saudi Arabia’s regulatory boundaries. To support this functionality, Jeel has also collaborated with Mambu, a cloud-native core banking technology provider. Mambu supplies the modular banking architecture that underpins the platform’s technology layer, allowing developers to deploy simulated wallet interfaces into banking-as-a-service environments. The sandbox operates on Google Cloud infrastructure, providing scalability and flexibility for testing purposes.
Cloud Infrastructure and Regulatory Developments
Saudi Arabia is also advancing broader digital infrastructure initiatives alongside these fintech efforts. According to local reporting, the Kingdom plans to launch a cloud computing special economic zone near Riyadh, with implementation scheduled from early April 2026. The zone is expected to offer tax and regulatory incentives designed to attract cloud providers and data center operators facing high setup costs and energy demands.
Companies operating within the zone will be subject to corporate income tax, while zakat obligations will not apply, distinguishing it from other Saudi economic zones. Industry observers have suggested that this move sends a strong signal to the domestic technology community about the government’s intent to accelerate cloud adoption and expand local digital infrastructure. In practical terms, the initiative could make it easier for local firms to build partnerships and scale operations within a growing cloud ecosystem.
Regulatory frameworks for the new zone are set to take legal effect from early April 2026, following their publication in the official gazette in mid-January. Licensed entities will be granted an additional 90-day period to meet compliance requirements, although detailed guidance on tax relief and qualification criteria is still pending.
Growing Capital Markets Context
Alongside these technology-focused developments, Saudi Arabia’s capital markets continue to expand. Fitch Ratings has projected that the Kingdom’s debt capital market could reach $600 billion in outstanding value by the end of 2026. Outstanding Saudi debt surpassed $520 billion in 2025, marking a 21% year-over-year increase, with sukuk instruments accounting for nearly two-thirds of the total. Fitch has also noted that the majority of rated Saudi sukuk remain investment grade, supported by stable issuer outlooks and rising participation from foreign investors in domestic markets.
