Ripple, a blockchain-based payments firm, has received provisional regulatory approval from Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), to offer digital asset payments and token products in the country. Ripple’s subsidiary, Ripple Markets Asia Pacific, will be able to expand its On-Demand Liquidity (ODL) service, which enables customers to move XRP globally without the need for intermediaries like banks. The company applied for an institutional payment license under Singapore’s Payment Service Act.
Brad Garlinghouse, the CEO of the Company, commended Singapore’s pragmatic and innovation-driven approach to cryptocurrency-related services. He stated that the country would serve as a significant gateway for Ripple’s business operations in the Asia Pacific region.
Ripple’s chief legal officer, Stu Alderoty, praised Singapore’s early leadership and its role in establishing a clear taxonomy and licensing framework for regulators worldwide. The regulatory approval from MAS allows Ripple to expand its customer reach and support those interested in building a more inclusive and borderless financial system using blockchain and crypto technologies.
Ripple expansion in Singapore
The crypto exchange has been actively expanding its presence in Singapore, doubling its number of employees in the Asia Pacific headquarters in 2022. Singapore has seen a majority share of ODL transactions flowing through the city-state, making it a crucial hub for the Company’s operations in the region.
While the Company encountered relatively fewer legal barriers in Singapore, it has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) since December 2020. The SEC sued the exchange, alleging that it had offered XRP, the token powering the XRP Ledger, as an unregistered security. A ruling on this high-profile case is expected in the coming months.
In other developments, The Company recently partnered with Banco de la República, the central bank of Colombia, to pilot a Central Bank Digital Currency (CBDC) on its XRP Ledger. The company has also formed partnerships with central banks in Montenegro and Thailand, as well as numerous regional banks and financial institutions worldwide.
On June 21, MAS released its Purpose Bound Money white paper, which proposes standards for fintech firms offering digital money services in Singapore. This regulatory framework aligns with Ripple’s vision and supports its activities in the country.
The Company’s in-principle regulatory approval in Singapore marks a significant milestone for the company, providing it with a supportive regulatory environment to enhance its offerings and expand its footprint in the Asia Pacific region.
