Blockchain-based payments firm Ripple has received in-principle regulatory approval from the Monetary Authority of Singapore (MAS) to offer digital asset payments and token products in Singapore. This approval will allow Ripple’s subsidiary, Ripple Markets Asia Pacific, to expand its On-Demand Liquidity (ODL) services in the city-state. ODL enables Ripple’s customers to move XRP, the cryptocurrency used on Ripple’s platform, around the world without the need for traditional banks as intermediaries.
To obtain this approval, Ripple applied for the institutional payment license under Singapore’s Payment Service Act. Ripple’s CEO, Brad Garlinghouse, praised the MAS for its innovation-first approach to cryptocurrency-related services and highlighted Singapore’s position as a prominent gateway for Ripple’s operations in the Asia Pacific region. Ripple’s chief legal officer, Stu Alderoty, also commended Singapore’s early leadership in developing a clear taxonomy and licensing framework for digital assets.
This approval represents a significant expansion for Ripple, allowing the company to support its customers’ blockchain and crypto technology adoption and contribute to building a more inclusive and borderless financial system. In recent years, Ripple has experienced significant growth in the Asia Pacific region. In 2022, the company doubled the number of employees in its Singapore headquarters, and a majority share of ODL transactions flowed through the city-state.
The MAS has been proactive in regulating digital money services in Singapore. On June 21, the MAS released a white paper proposing standards for fintech firms providing digital money services, including central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins, on a distributed ledger. This regulatory framework provides clarity for companies like Ripple and sets conditions for the use of digital money in Singapore.
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While Ripple’s regulatory approval in Singapore has been relatively smooth, the company has faced legal challenges in other jurisdictions. Since December 2020, Ripple’s legal team has been engaged in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), alleging that Ripple offered XRP as an unregistered security. The outcome of the case is expected to be determined in the coming months.
Despite these challenges, Ripple has continued to expand its partnerships and collaborations around the world. In June, Ripple partnered with Colombia’s central bank, Banco de la República, to pilot a CBDC on its XRP Ledger. Additionally, Ripple has formed partnerships with central banks in Montenegro and Thailand, as well as numerous regional banks and financial institutions.
The regulatory approval from MAS marks a significant milestone for Ripple and the broader adoption of digital assets in Singapore. It highlights Singapore’s commitment to innovation and creating a conducive environment for fintech companies to thrive. With this approval, Ripple can further develop its services and solutions, supporting its customers in harnessing the potential of blockchain and crypto technologies. The expansion of Ripple’s operations in Singapore also presents new opportunities for collaboration and investment in the local fintech ecosystem.
In conclusion, Ripple has obtained in-principle regulatory approval from Singapore’s financial regulator, the MAS, to offer digital asset payments and token products in Singapore. This approval allows Ripple to expand its On-Demand Liquidity services and further its mission of building a more inclusive and borderless financial system. The regulatory framework established by the MAS provides clarity and sets standards for the use of digital money in Singapore. Despite its legal challenges in other jurisdictions, Ripple continues to forge partnerships and explore novel use cases for its technology, including CBDC pilots with central banks. The approval from MAS is a significant achievement for Ripple and paves the way for further growth and innovation in the Asia Pacific region.
