Riyad Bank’s Jeel and Ripple Launch Sandbox Partnership to Test Blockchain Payments in Saudi Arabia

Jeel, the innovation division of Riyad Bank, has partnered with blockchain firm Ripple to explore new financial services powered by distributed ledger technology. The initiative will primarily target cross-border payment solutions and potential digital asset applications within Saudi Arabia.

As part of the collaboration, both organizations will conduct pilot tests within Jeel’s regulatory sandbox. This controlled testing framework enables banks and technology providers to trial emerging systems under regulatory supervision before any large-scale rollout.

The partnership aligns with Saudi Arabia’s ongoing efforts to strengthen digital banking and payment infrastructure. These initiatives are closely tied to the Kingdom’s Vision 2030 agenda, which focuses on economic modernization and expanding private-sector involvement in technology-led services.

Through the trials, Jeel and Ripple will assess whether blockchain solutions can deliver quicker international settlements, improved transparency, and reliable operations while remaining compliant with regulatory standards.

Focus on Improving Cross-Border Transactions

International remittances and payment channels form the core focus of the project. Cross-border transactions continue to pose challenges for financial institutions due to slow settlement times, high intermediary fees, and limited visibility across payment chains.

The partners will test blockchain-powered payment corridors designed to streamline international transfers. Ripple’s infrastructure will be evaluated within the sandbox to measure performance under real transaction conditions.

Given Saudi Arabia’s importance in global remittance flows—both as a host to expatriate workers and a regional financial center—enhancing inbound and outbound payment efficiency remains a strategic priority for banks serving businesses and individuals alike.

The testing phase aims to determine whether blockchain technology can effectively address these needs while aligning with local regulatory requirements.

Sandbox Model Prioritizes Compliance and System Performance

Jeel’s sandbox framework is designed to encourage innovation without compromising regulatory discipline. Through this setup, Jeel and Ripple can simultaneously evaluate system performance and compliance readiness.

Testing parameters will include transaction throughput, system resilience, processing capacity, and data protection mechanisms. Maintaining regulatory compatibility remains a key objective throughout the trials.

Jeel executives have highlighted that sandbox-based testing allows institutions to experiment with new financial infrastructure in a controlled manner. This reflects a broader regional trend where regulators increasingly support structured pilot environments for emerging payment and digital finance technologies.

For Ripple, the sandbox offers a rare opportunity to test its enterprise blockchain solutions within a fully regulated Saudi banking environment.

Evaluating Digital Asset and Tokenization Capabilities

In addition to payments, the partnership will explore frameworks for digital asset custody and tokenized assets. These areas are gaining traction as financial institutions seek secure and scalable methods to manage blockchain-based assets.

The testing will cover asset storage systems, authorization workflows, and operational safeguards. The objective is to identify solutions that meet institutional security expectations while remaining adaptable for large-scale use.

Tokenization—transforming traditional assets into digital representations on a blockchain—will also be assessed. Many financial institutions see tokenization as a way to enhance settlement speed and optimize asset management processes.

Any progress beyond testing will depend on regulatory clearance and the results achieved during the sandbox phase.

Ripple Strengthens Its Role in Saudi Financial Innovation

This collaboration gives Ripple access to Saudi Arabia’s regulated financial innovation ecosystem. Through Jeel’s institutional network, Ripple will trial its blockchain platforms within the national banking landscape.

Ripple’s regional leadership has identified Saudi Arabia as a key market for digital transformation. Participation in the sandbox allows the company to demonstrate its technology under regulatory oversight rather than through isolated proof-of-concept initiatives.

The partnership also enables Ripple to better understand local infrastructure needs, compliance expectations, and operational practices specific to Saudi banks.
For Saudi financial institutions, working with a globally established blockchain provider provides exposure to enterprise-grade solutions already deployed in other markets.

Supporting Vision 2030’s Digital Finance Objectives

Digital finance plays a central role in Saudi Arabia’s Vision 2030 reform strategy. The initiative encourages collaboration between banks and technology companies to develop payment systems that support trade, investment, and financial inclusion.

Jeel’s engagement with Ripple reflects this strategic direction. Testing blockchain systems within a supervised environment aligns with national goals to modernize financial services while preserving stability.

Regulators have emphasized the need to balance innovation with risk management, and sandbox programs serve as a practical mechanism to achieve both.
By partnering with Ripple, Jeel integrates international blockchain expertise into the Kingdom’s financial modernization framework.

Part of Riyad Bank’s Broader Digital Transformation Plan

As Riyad Bank’s innovation arm, Jeel is tasked with identifying and testing emerging technologies before broader implementation. The Ripple partnership complements the bank’s wider digital strategy, which includes modernizing payment infrastructure and expanding digital banking offerings.

Riyad Bank is one of Saudi Arabia’s largest financial institutions, serving corporate, retail, and government sectors. Jeel plays a critical role in evaluating new technologies prior to enterprise-wide adoption.

Rather than moving directly into live deployment, the bank uses sandbox testing to assess risk, operational reliability, and regulatory implications—demonstrating a cautious yet methodical approach to innovation.

Blockchain Momentum Across the Gulf Region

Banks and regulators across the Gulf have shown increasing interest in blockchain for payments, trade finance, and digital asset services. Several countries in the region have introduced regulatory sandboxes and pilot programs linked to digital currencies and settlement systems.

Saudi Arabia has adopted a similar approach, supporting controlled experimentation while maintaining regulatory oversight. The Jeel–Ripple collaboration reflects this balance between innovation and supervision.

As the Middle East strengthens its role in global trade linking Asia, Europe, and Africa, improving payment infrastructure remains closely tied to economic integration goals.
Blockchain solutions continue to attract attention for their potential to reduce settlement delays and simplify cross-border operations.

Fintech Partnerships Gain Traction

The collaboration underscores a growing trend where traditional banks partner with fintech and blockchain specialists instead of building all capabilities in-house.

Ripple contributes technical blockchain expertise, while Jeel provides regulatory access and institutional integration. This partnership model allows banks to adopt new technology while retaining control over compliance and risk governance.

The initiative also supports Riyad Bank’s ambition to remain an active contributor to Saudi Arabia’s digital finance ecosystem.

Industry analysts note that such collaborations often determine whether emerging technologies progress from pilot stages to mainstream banking adoption.

Regulatory Approval Will Shape Future Expansion

Any move beyond sandbox testing will depend on regulatory decisions and the outcomes of performance evaluations. Saudi regulators continue to assess how blockchain solutions align with existing financial regulations and consumer protection standards.

Key considerations include data privacy, transaction oversight, and secure asset custody mechanisms.

The sandbox model enables regulators to observe real-world behavior of new systems without exposing the wider financial sector to untested risks.

This regulatory process will play a decisive role in shaping the future of digital finance in Saudi Arabia.

Next Steps in the Collaboration

Jeel and Ripple have not announced a timeline for completing the testing phase or transitioning to live deployments. The next stage will focus on reviewing performance metrics, compliance readiness, and operational feasibility.

If the results meet regulatory and institutional benchmarks, the partnership could expand into active payment corridors or digital asset services integrated with Riyad Bank’s platforms.
Any rollout would be phased and closely monitored under regulatory supervision.

For now, the emphasis remains on validation, testing, and system assessment.

A Structured Approach to Blockchain Adoption

The Jeel–Ripple initiative illustrates a measured pathway toward blockchain integration within Saudi Arabia’s banking sector. Instead of rapid implementation, the project prioritizes compliance, performance evaluation, and operational preparedness.

Areas such as cross-border payments, digital asset custody, and tokenization require both advanced technology and regulatory coordination.

By leveraging a sandbox environment, Jeel and Ripple seek to determine whether blockchain solutions can meet institutional standards in one of the region’s most significant banking markets.

The results of these trials will influence how quickly blockchain-based services transition from controlled testing into everyday banking operations across Saudi Arabia.

Voice Of Osiz

At Osiz, we see the Jeel–Ripple collaboration as a strong signal of how regulated blockchain innovation is reshaping global banking. By testing cross-border payments and digital asset infrastructure within a regulatory sandbox, this partnership highlights a practical, compliance-first approach to blockchain adoption. Saudi Arabia’s alignment with Vision 2030 further reinforces the region’s commitment to modern financial systems. The focus on speed, transparency, and operational reliability reflects real-world banking priorities. Such initiatives demonstrate how enterprise blockchain can move beyond pilots into institutional readiness. For Osiz, this validates the growing demand for secure, scalable, and regulation-aligned blockchain solutions.

Source: Fintech Weekly