- Ripple has received a preliminary operational license from the Monetary Authority of Singapore
- The company had been relying on an exemption while its application was being processed
- It can now legally offer XRP cross-border payments to institutions in the country
Ripple has received preliminary regulatory approval to commence operations in Singapore in the form of in-principle approval for a Major Payment Institution Licence. With the license, awarded by the Monetary Authority of Singapore, the country’s central bank, Ripple will be able to provide regulated digital payment token products and services. Moreover, it will facilitate the expansion of cross-border transfers using XRP, which is something Ripple has been trying to achieve for over a decade.
Ripple’s Asia Expansion
Ripple’s Singapore-based entity, Ripple Markets Apac, has been growing significantly in the last year, with its local workforce growing to nearly 50 employees, according to The Straits Times.
The expansion has focused on key areas such as business development, compliance, finance, legal, and sales, with Ripple evidently focusing on this region as an easier nut to crack than the US. Announcing the awarding of the license, Ripple highlighted that Singapore is among its fastest-growing markets and a significant hub for talent acquisition.
Adoption to Follow?
The awarding of the preliminary license means that Ripple will now be able to offer digital payment token products and services in Singapore, services it has already been providing since 2020 using an exemption. The company will now have to operate under the official regulated framework while it awaits a full license, which is normally a formality.
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
Ripple has been banging the drum of global adoption ever since it was founded in 2012 although it has met with little success. The awarding of such a license will be a good first step for its reputation, but unless customers follow suit it will have been a pyrrhic victory.
