Ripple states that the “in principle” approval will aid in scaling its “On-Demand Liquidity” service, which it uses to provide customers with XRP liquidity.
Ripple, a blockchain-based payments company, has received preliminary regulatory approval from Singapore’s financial regulator to offer token products and digital asset payments there.
In a statement on June 22, Ripple confirmed the Monetary Authority of Singapore’s (MAS) approval. Its subsidiary, Ripple Markets Asia Pacific, would be able to build up its on-demand liquidity thanks to the approval. The ODL enables Ripple’s users to transfer XRP internationally without the need for banks to act as middlemen.
We’re honored to obtain In-Principle Approval of a Major Payments Institution License from the @MAS_sg – allowing us to offer regulated digital asset products and services, and scale customer use of #ODL. 🇸🇬
Learn more: https://t.co/8Ylc3lZSeg
— Ripple (@Ripple) June 22, 2023
Under Singapore’s Payment Service Act, the company requested a license for institutional payments.
Brad Garlinghouse, CEO of Ripple, complimented Singapore’s regulator for its “pragmatic, innovation-first approach” to services relating to cryptocurrencies and said that Singapore will serve as a “prominent gateway” for Ripple’s business activities in the Asia Pacific region.
Stu Alderoty, the chief legal officer of Ripple, added that Singapore’s “early leadership” is opening doors for other regulators seeking to create a “clear taxonomy and licensing framework.”
1/ @MAS_sg has built a workable framework that truly unites consumer protection, market integrity and innovation. They’ve also outlined a clear taxonomy to classify and regulate digital assets – making it possible for companies like Ripple to build and offer compliant products. https://t.co/KLYzWRrST0
— Stuart Alderoty (@s_alderoty) June 22, 2023
The permission, according to Alderoty, broadens the scope of Ripple’s consumer base.
This preliminary regulatory approval from the MAS will make it possible for us to better assist our forward-thinking clients who are focusing on blockchain and cryptocurrency technologies to create a more inclusive and global financial system.
As a result of the majority of ODL transactions passing through Singapore’s capital city in 2022, Ripple managed to double the number of employees at its Asia Pacific headquarters.
On June 21, the MAS released its own Purpose Bound Money white paper, in which it suggests guidelines for fintech companies offering services related to digital money in Singapore:
.@MAS_sg published a whitepaper proposing a common protocol to specify conditions for the use of digital money such as CBDCs, tokenised bank deposits, and stablecoins on a distributed ledger.
READ: https://t.co/ZzY0OjOG1n
— MAS (@MAS_sg) June 21, 2023
While Ripple’s journey to compliance with Singapore was relatively free of legal hurdles, this hasn’t been the case elsewhere.
Ripple’s legal team has been unable to negotiate with the U.S. Securities and Exchange Commission since December 2020, when the SEC sued Ripple for purportedly offering XRP, the token that powers the XRP Ledger, as an unregistered security.
According to Garlinghouse, a decision is expected to be made on the widely discussed case in the weeks to come.
On June 15, Ripple partnered with Banco de la Republica, the central bank of Colombia, to test a central bank digital currency on its XRP Ledger.
Along with many other regional banks and financial institutions worldwide, the company has also collaborated with the central banks of Montenegro and Thailand.