Blockchain-based payments company Ripple has received in-principle regulatory approval from Singapore's financial watchdog to offer digital asset payments and token offerings in Singapore.
Ripple confirmed the approval from the Monetary Authority of Singapore (MAS) in a statement on June 22. The approval will allow its subsidiary Ripple Markets Asia Pacific to further expand its on-demand liquidity. ODL helps Ripple's customers move XRP around the world without the intervention of a bank as an intermediary. The company has applied for an Institutional Payments License under Singapore's Payment Services Act.
Ripple CEO Brad Garlinghouse praised Singapore regulators for their "pragmatic, innovation-first approach" to cryptocurrency-related services, adding that the country will provide support for Ripple's presence in the Asia-Pacific region. Business operations provide the "vital gateway".
Ripple's chief legal officer, StuAlderoty, also noted that Singapore's "early leadership" is paving the way for other regulators seeking to develop a "clear classification and licensing framework." Alderoty explained that the approval expands Ripple's client base.
"The HKMA's regulatory approval-in-principle will allow us to better support our forward-thinking clients who want to delve deeper into blockchain and crypto to build a more inclusive and borderless financial system."
In 2022, Ripple managed to double the headcount at its Asia-Pacific headquarters, as its Singapore base experiences the lion's share of ODL transactions flowing through the city-state. MAS published its own Purpose Bound Money white paper on June 21 , proposing criteria for fintech firms offering digital currency services in Singapore: While there aren't many legal hurdles in Ripple's path to comply with Singapore regulations, that's not the case elsewhere.
Ripple's legal team has been at loggerheads with the SEC since December 2020 after the regulator sued them for allegedly offering XRP, the token that powers the XRP Ledger, as an unregistered security. Garlinghouse said the high-profile case will be decided in the coming months . On June 15, Ripple partnered with Colombia's central bank, Banco de la República, to pilot a central bank digital currency on its XRP Ledger.
The company works with the central banks of Montenegro and Thailand, in addition to many other regional banks and financial institutions around the world.
