Singapore Grants Preliminary Approval To Ripple For Digital Asset Services

Singapore’s Monetary Authority (MAS) has granted in-principle regulatory approval to blockchain-based payments firm Ripple. This approval allows the company to offer digital asset payments and token products in the city-state.

Ripple stated on June 22 that it had acquired permission from the Monetary Authority of Singapore (MAS). Ripple, through its subsidiary Ripple Markets Asia Pacific, plans to expand. Furthermore, the goal is to provide seamless XRP liquidity globally via its On-Demand Liquidity (ODL) service.

This eliminates the need for traditional intermediaries such as banks. This significant development comes as Ripple seeks an institutional payment license under Singapore’s Payment Service Act.

The approval signifies the nation’s progressive and innovation-driven stance on cryptocurrency-related services. Ripple CEO Brad Garlinghouse praised Singapore’s pragmatic approach. He highlighted the country’s potential as a gateway for Ripple’s business operations in the Asia Pacific.

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

Stu Alderoty, Ripple’s chief legal officer, emphasized Singapore’s early leadership in establishing clear regulatory frameworks. This paves the way for other jurisdictions looking to foster a more inclusive and borderless financial system.

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 MAS’s in-principle regulatory approval expands Ripple’s customer reach, allowing the company better to support forward-thinking customers interested in blockchain and crypto technologies.

Ripple’s commitment to the region is evident as it doubled its Asia Pacific workforce in 2022, with Singapore as the central hub for ODL transactions. The city-state has proved instrumental in Ripple’s global operations, showcasing the significance of the latest approval.

While Ripple’s progress in Singapore remains unhindered, the company has encountered legal challenges in other jurisdictions. The U.S. has embroiled Ripple in a legal battle since December 2020.

Securities Exchange Commission (SEC) over allegations of offering XRP, the token powering the XRP Ledger, as an unregistered security. The United States is set to rule in this high-profile case in the coming months.

Despite regulatory hurdles elsewhere, Ripple continues to forge strategic partnerships and collaborations on a global scale. The firm cooperated with Colombia’s central bank, Banco de la Republica, on June 15.

Singapore’s Progressive Regulatory Environment Fuels Ripple’s Expansion

The partnership aims to pilot a central bank digital currency leveraging the XRP Ledger. Ripple has also established partnerships with major banks in Montenegro and Thailand and numerous regional banks and financial institutions worldwide.

Singapore’s forward-thinking regulatory environment has positioned it as a critical player in the global cryptocurrency landscape. On June 21, the MAS published its Purpose Bound Money white paper.

The paper proposes standards for nationwide fintech firms offering digital money services. Ripple’s regulatory approval aligns with Singapore’s efforts to foster innovation while maintaining robust oversight.

The MAS’s endorsement of Ripple signifies the country’s commitment to enabling cutting-edge financial technologies. Singapore is building a more inclusive and efficient financial ecosystem by embracing digital asset payments and supporting Ripple’s ODL service.

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

As Ripple gains momentum in Singapore, the company’s ability to streamline cross-border transactions grows stronger. It also provides individuals and organizations faster, cheaper, and more accessible payment methods.

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With ongoing partnerships and collaborations worldwide, Ripple advances its mission of revolutionizing the global financial landscape. It adheres to regulatory frameworks and fosters innovation in the process.