Ripple Labs, the Asia-Pacific branch of San Francisco-based technology firm Ripple Labs, announced on Thursday that it has received in-principle approval for its Major Payments Institution License application from the Monetary Authority of Singapore (MAS). As a result, the company will now be able to offer digital payment services in Singapore.
The license granted to Ripple Markets APAC Pte permits the company to provide regulated digital payment token services and products in Singapore. This is an important development for Ripple as it allows the company to expand customer usage of its On-Demand Liquidity (ODL) service, which utilizes the XRP cryptocurrency to facilitate cross-border payments. According to a press release by Ripple, last year a significant amount of the company’s global ODL transactions flowed through Singapore, where its Asia Pacific headquarters are located. Ripple has also managed to double its workforce in the region over the past year.
Stu Alderoty, the chief legal officer of Ripple, stated that the in-principle regulatory approval from MAS is a reflection of Singapore’s early leadership in developing a clear taxonomy and licensing framework for cryptocurrencies. He believes that this approval will enable Ripple to better support its customers who are exploring blockchain and crypto technologies to build a more inclusive and borderless financial system.
Ripple’s expansion into Singapore aligns with the growing interest in digital payments and cryptocurrencies in the region. Many countries are now looking to develop regulatory frameworks for crypto, and Singapore’s leadership in this area makes it an attractive destination for companies like Ripple. The company’s presence in Singapore will not only benefit its customers but also contribute to the further development of the local fintech ecosystem.
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This approval comes at a time when Ripple is facing a legal battle in the United States against the Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, alleging that the company sold $1.3 billion in unregistered securities. Despite the ongoing legal proceedings, Ripple remains committed to expanding its services and partnerships globally.
In addition to its activities in Singapore, Ripple has also made significant strides in other parts of Asia. In May, Ripple collaborated with Fubon Bank, a Hong Kong subsidiary of Taiwan’s Fubon Financial Holding Co., to launch a payment platform. The platform aims to explore use cases for Hong Kong’s central bank digital currency, the e-HKD. This partnership demonstrates Ripple’s commitment to innovation and collaboration in the region.
Ripple’s success in Asia-Pacific can be attributed to its advanced technology and strategic partnerships. The company’s On-Demand Liquidity service has gained popularity among financial institutions due to its ability to provide real-time, low-cost cross-border payments. Ripple’s focus on regulatory compliance also sets it apart from its competitors. By obtaining the Major Payments Institution License in Singapore, Ripple has demonstrated its commitment to operating within the framework of established regulations.
The future looks promising for Ripple as it continues to expand its presence in Asia-Pacific and beyond. With its robust technology, strong partnerships, and commitment to regulatory compliance, the company is well-positioned to transform the global payments industry. As more countries develop regulatory frameworks for cryptocurrency and digital payments, Ripple’s expertise and experience will prove invaluable in driving the adoption of these innovative technologies.
Overall, Ripple’s approval to offer digital payment services in Singapore is a significant milestone for the company and the wider fintech industry. It showcases the increasing acceptance and adoption of cryptocurrencies and blockchain technology in one of the world’s leading financial hubs. With the backing of MAS and its commitment to compliance and innovation, Ripple is poised to revolutionize cross-border payments and contribute to the creation of a more inclusive and efficient global financial system.
