Blockchain-based payments firm Ripple has received approval-in-principle from Singapore’s financial regulator to offer digital asset payments and token offerings in the country.
ripple comfirmed The Monetary Authority of Singapore (MAS) approved the plan in a June 22 statement. 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 banks as intermediaries.
We are proud to have received approval-in-principle for a major payment institution license @MAS_sg – Enable us to offer regulated digital asset products and services and expand customer usage #ODL.
learn more: https://t.co/8Ylc3lZSeg
— Ripple (@Ripple) June 22, 2023
The company application Apply for an institutional payment license in accordance with Singapore’s Payment Services Act.
Ripple CEO Brad Garlinghouse commend The Singapore regulator praised the “pragmatic, innovation-first approach” to cryptocurrency-related services, adding that the country will provide a “significant gateway” for Ripple’s business operations in the Asia-Pacific region.
Ripple’s chief legal officer, Stu Alderoty, also noted that Singapore’s “early leadership” is paving the way for other regulators looking to develop a “clear classification and licensing framework.”
1/ @MAS_sg Creates a practical framework that truly brings together consumer protection, market integrity and innovation. They also outline a clear taxonomy to classify and regulate digital assets — enabling companies like Ripple to build and offer compliant products. https://t.co/KLYzWRrST0
— Stuart Alderoty (@s_alderoty) June 22, 2023
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 released its own Purpose Bound Money white paper on June 21, proposing standards for fintech companies offering digital currency services in Singapore:
.@MAS_sg Published a white paper proposing a general protocol to specify the conditions of use of digital currencies such as CBDCs, tokenized bank deposits and stablecoins on distributed ledgers.
read: https://t.co/ZzY0OjOG1n
— MAS (@MAS_sg) June 21, 2023
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 dealing 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.
related: Ripple vs. SEC: Could Newly Published Documents Tip the Balance?
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.
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