Ripple, the prominent blockchain-based payments firm, has achieved a major breakthrough with the approval of a Major Payments Institution License from the Monetary Authority of Singapore (MAS). This significant regulatory milestone allows Ripple’s Singapore branch to provide regulated digital payment token products and services, as well as expand the adoption of its crypto-enabled On-Demand Liquidity (ODL) platform.
Quick facts:
- Ripple secures Major Payments Institution License from the Monetary Authority of Singapore.
- Ripple’s On-Demand Liquidity (ODL) platform, powered by XRP, enables fast cross-border transactions for payment providers and banks.
- Meanwhile, the company continues to navigate its legal dispute with the SEC and expand globally, including the recent acquisition of crypto custody services company Metaco.
By obtaining the Major Payments Institution License, Ripple gains a solid foothold in Singapore’s rapidly growing digital payments market. The license enables Ripple to enhance its offerings while leveraging the ODL platform, which has witnessed impressive year-on-year growth in the country, as per a CNBC report on Thursday.
Ripple, a San Francisco-based fintech firm, is known for XRP, a digital asset, and its blockchain-driven interbank messaging services. The company’s on-demand liquidity solution leverages XRP as a bridge currency, enabling swift cross-border transactions for payment providers and banks.
Beyond its on-demand liquidity offering, Ripple operates RippleNet, a blockchain-powered international messaging system. Similar to the renowned global interbank messaging system SWIFT, RippleNet facilitates seamless and secure transfers of substantial funds between financial institutions and banks.
Ripple’s Singapore office is poised for expansion, having experienced a 50% increase in headcount year-on-year and now employing 50 full-time staff across key functions such as business development, compliance, finance, legal, and sales. The license approval enables Ripple to tap into the burgeoning licensed digital asset market in Singapore.
Ripple Cements Its Presence in APAC Region
MAS has been actively granting licenses in the payment services sector, with 190 Major Payment Institution licenses and 11 Digital Payment Token Service licenses approved thus far. The regulatory body has received a significant number of applications for payment services licenses, signaling the growing interest and participation in Singapore’s digital payments landscape.
Over time, the bustling metropolis in Asia has established itself as a jurisdiction that embraces financial technology and cryptocurrency. It has welcomed numerous prominent companies, including domestic banking powerhouse DBS, British fintech firm Revolut, and Singapore-based crypto exchange Crypto.com, earning a reputation as a crypto-friendly hub.
Ripple’s approval comes as Binance withdrew from Singapore and canceled its application for a Digital Payment Token license in December 2021. Ripple, on the other hand, is well-positioned to capitalize on the country’s digital payments market with its licensed status and commitment to compliance.
The development comes following Ripple’s acquisition of Metaco, a crypto custody services company, for $250 million. The fintech firm aims to broaden its presence in the Swiss market and reduce its reliance on the United States. Ripple’s CEO, Brad Garlinghouse, revealed that the company expects to spend over $200 million in legal fees by the conclusion of its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).
