Ripple has received regulatory approval in principle from the Singaporean financial regulator. This means they are now allowed to offer digital asset payments and token products in the country.
In a June 22 statement, Ripple confirmed the approval of the Monetary Authority of Singapore (MAS). This approval enables their subsidiary – Ripple Markets Asia Pacific – to further scale up its On-Demand Liquidity (ODL). The ODL allows Ripple’s customers to move XRP globally without going through banks.
Regulations under the Singapore Payment Service Act
Ripple applied for institutional payments license under the Singapore Payment Service Act. Ripple CEO Brad Garlinghouse praised the Singapore regulator for its “pragmatic, innovation-driven approach” to cryptocurrency-related services. He added that Singapore will provide an important gateway for Ripple’s business in the Asia-Pacific region.
Alderoty, Ripple’s chief legal officer, noted that Singapore’s proactive stance paves the way for other regulators to develop clear regulatory policies. He explained that this approval allows Ripple to serve a broader customer base.
“The provisional green light from the MAS helps us better support customers who want to further develop the blockchain and crypto technologies. With this we strive for a more inclusive and borderless financial system.”
Expansion in Asia Pacific
Despite the pending lawsuit against the US Securities Exchange Commission (SEC), Ripple’s growth in the Asia-Pacific region continues unabated. By 2022, the company has succeeded in doubling the number of employees at its headquarters in this region, underlined by the fact that the majority of On-Demand Liquidity (ODL) transactions are routed through Singapore.
Singapore’s regulator, the Monetary Authority of Singapore (MAS), is also taking steps to regulate the digital money market. They released a white paper on June 21 called “Purpose Bound Money.” In this they provide rules for fintech companies that want to offer digital money services in Singapore. These steps show that Singapore wants to be an important place in the growing crypto world.
A growing role in the development of CBDCs
There is more positive news to report for Ripple. There is an increasing stream of reports confirming that countries are using their central banks to use the Ripple technology to develop Central Bank Digital Currencies (CBDCs). A clear example of this is the partnership that Ripple entered into on June 15 with the Colombian central bank, Banco de la República. The purpose of this collaboration was to test a CBDC on Ripple’s XRP Ledger.
But the cooperation with Colombia is only the tip of the iceberg. Ripple also partners with central banks in Montenegro and Thailand, and has ties to numerous other regional banks and financial institutions around the world. This growing list of collaborations underlines the increasing relevance of Ripple’s technology in the global financial infrastructure.