Ripple obtains in-principle approval for its digital asset services in Singapore
June 22, 2023 10:03 AM
According to Ripple, the "in principle" permission will allow the company to expand its "On-Demand Liquidity" service, providing clients with XRP liquidity.
Ripple, a blockchain-based payments company, has been given preliminary authorization by Singapore's financial regulator to provide digital asset payments and token products within the country.
In a statement→ released on June 22nd, Ripple confirmed the green light from Singapore's monetary regulator. The authorization will allow Ripple Markets Asia Pacific, its subsidiary, to expand its On-Demand Liquidity. The ODL enables Ripple's clients to send XRP around the globe without banks needing to act as intermediaries.
Under Singapore's Payment Service Act, the company applied→ for an institutional payment license.
Ripple CEO Brad Garlinghouse complimented→ Singapore's regulator for its "pragmatic, innovation-first approach" to cryptocurrency-related services, adding that the country will serve as a "prominent gateway" for Ripple's Asia Pacific business operations.
Stu Alderoty, Ripple's chief legal officer, has stated that Singapore's "early leadership" is setting the way for other regulators seeking to create a "clear taxonomy and licensing framework."
Alderoty stated that the approval broadens Ripple's consumer base.
"This in-principle license from the MAS will allow us to better support our forward-thinking clients looking to zero in on blockchain and crypto solutions to construct a more inclusive and borderless financial structure."
Ripple managed to treble the number of staff in its Asia Pacific offices in 2022, as the city-state of Singapore experienced a majority share of ODL transactions.
On June 21, the MAS published its own Purpose Bound Money white paper, which recommends standards for fintech enterprises offering digital money services in Singapore:
While Ripple's journey to Singapore compliance was relatively straightforward, this has not been the case elsewhere.
Ripple's legal team has been in a legal battle with the Securities and Exchange Commission since December 2020, when the commission accused them of marketing XRP — the cryptocurrency that runs XRP Ledger — as an unregistered security.
According to Garlinghouse, a decision on the high-profile case is expected in the coming months.
Ripple announced a partnership with Colombia's central bank, Banco de la Repblica, on June 15 to pilot a central bank digital currency on its XRP Ledger.
In addition to numerous other regional banks and financial institutions around the world, the firm has collaborated with central banks in Montenegro and Thailand.