Ripple Receives ‘Approval’ In Singapore For Major Payment Institution License

Sahana Kiran
Ripple
Source – Unsplash

Despite facing ongoing legal scrutiny in the United States, Ripple, a leading blockchain company, has been actively seeking opportunities to expand its presence in other countries. In a major development, the firm has obtained regulatory approval to conduct its operations in Singapore. This marks another step in its global expansion strategy.

Ripple has confirmed that it has been granted in-principle approval for a Major Payment Institution License by the Monetary Authority of Singapore [MAS]. Serving as both the central bank and regulatory body of Singapore, MAS’s approval enables Ripple to provide regulated digital payment token products and services. Additionally, Ripple plans to expand the adoption of its crypto-enabled On-Demand Liquidity [ODL] platform among its customers. Stu Alderoty, Chief Legal Officer of Ripple said,

“We’re pleased that Singapore has taken a forward-looking approach to how to regulate digital assets. With their licensing framework, they have figured out how to create a clear taxonomy for digital assets, balancing the need to protect consumers’ interests and the need to protect the integrity of the markets, while doing so in a way that promotes innovation and investment.”

MAS has approved 190 Major Payment Institution licenses and 11 Digital Payment Token Service licenses. Reports indicate that MAS has received over 680 applications for payment services licenses since January 2020. Out of these, 17 applications were rejected, and 214 applications were withdrawn.

Here’s why Ripple is veering into Singapore

Ripple is experiencing notable success in Singapore, as evidenced by the thriving growth of its Singapore office. The company recently announced a significant 50% rise in headcount compared to the previous year. Ripple has a total of 50 full-time employees. It has been strategically expanding its team across essential areas.

It is also worth noting that Ripple’s On-Demand Liquidity [ODL] platform has experienced significant growth in the country, increasing five-fold year-on-year. Moreover, a significant portion of its global ODL transactions is channeled through Singapore, where the company has established its regional Asia-Pacific headquarters.

The latest expansion reflected Ripple’s strong commitment to consolidating its position in Singapore. It also underscores its continuous efforts to establish a more prominent and influential presence in the country.