Ripple has received in-principle regulatory approval from Singapore’s financial regulator to offer digital asset payments and token products in the city-state.
In a statement released on June 22, Ripple verified the approval from the Monetary Authority of Singapore (MAS). The license will enable Ripple Markets Asia Pacific to further scale up its On-Demand Liquidity. The ODL enables Ripple’s customers to transfer XRP globally without the involvement of banks as middlemen.
The company applied for an institutional payment license under the Payment Service Act of Singapore.
CEO Brad Garlinghouse lauded the Singaporean regulator for its “pragmatic, innovation-first approach” to cryptocurrency-related services, adding that Singapore will serve as a “prominent gateway” for Ripple’s Asia-Pacific business operations.
Stu Alderoty, the chief legal officer of Ripple, remarked that Singapore’s “early leadership” is paving the way for other regulators seeking to establish a “clear taxonomy and licensing framework.”
Alderoty stated that the approval increases Ripple’s customer base.
In 2022, Ripple doubled the number of employees at its Asia Pacific headquarters due to the preponderance of ODL transactions passing through Singapore.
The MAS published its white paper on purpose-bound money on June 21, proposing standards for fintech firms offering digital money services in Singapore.
“This in-principle regulatory approval from the MAS will enable us to better support our forward-thinking customers looking to hone in on blockchain and crypto technologies to build a more inclusive and borderless financial system.”
Ripple’s path to compliance in Singapore was relatively free of legal obstacles, but this has not been the case elsewhere.
Ripple’s legal team has been unable to negotiate with the U.S. Securities and Exchange Commission since December 2020, when the regulator sued them for purportedly offering XRP as an unregistered security. XRP is the token that powers the XRP Ledger.
According to Garlinghouse, a decision on the high-profile case will be rendered in the coming months.
Banco de la República, the central bank of Colombia, partnered with Ripple on June 15 to pilot a central bank digital currency on its XRP Ledger.
In addition to partnering with central banks in Montenegro and Thailand, the company has partnered with numerous regional banks and financial institutions worldwide.
