DUBAI / NEW DELHI — The United Arab Emirates and India are exploring new ways to settle energy transactions using blockchain-based payment infrastructure, marking a significant shift away from the traditional U.S. dollar-dominated oil trade.
Recent reports indicate that a crude oil transaction between the two countries was conducted without using the U.S. dollar, with payments settled through local currencies and blockchain technology linked to the XRP Ledger, the network associated with Ripple’s payment ecosystem.
Under the arrangement, India paid for oil imported from the UAE using its own currency while the settlement process was supported by blockchain infrastructure designed to facilitate fast cross-border transactions. This approach eliminates the need for dollar conversion and reduces transaction costs in international trade.
The development is seen as part of a broader global movement toward “de-dollarization,” where countries increasingly experiment with local currencies and alternative payment systems in global trade. Governments and financial institutions have been seeking ways to reduce dependence on the U.S. dollar due to exchange-rate volatility, sanctions risks, and high settlement costs.
The UAE has been actively expanding blockchain and digital-asset innovation, including partnerships with technology firms to build financial infrastructure within the Dubai International Financial Centre (DIFC) Innovation Hub, a major regional fintech ecosystem.
However, analysts note that while blockchain networks like the XRP Ledger are being explored as part of settlement infrastructure, official confirmation from governments or Ripple about a formal partnership in oil trade transactions has been limited, and some reports suggest the blockchain element may have been used only in the backend of the payment process.
Still, the deal represents a notable signal of shifting financial dynamics in global energy markets. If similar arrangements expand, experts say they could accelerate the use of blockchain-based payment rails and local currencies in international commodity trade.
For India—the world’s third-largest oil importer—and the UAE, one of the Middle East’s leading energy exporters, such innovations could reshape how cross-border payments are handled in the future energy economy.