Singapore’s central bank and regulatory authority, the Monetary Authority of Singapore (MAS), has granted in-principle approval for a Major Payments Institution License to Ripple, a global blockchain technology company, media reports said.
This license will enable 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 among its customers. Notably, Ripple’s ODL platform has experienced a significant 5x growth in Singapore over the past year.
In an interview with CoinDesk, Stu Alderoty, Chief Legal Officer of Ripple, expressed satisfaction with Singapore’s forward-looking approach to digital asset regulation. He commended the country’s licensing framework, which has successfully established a clear taxonomy for digital assets while striking a balance between consumer protection and market integrity. Alderoty emphasized that this regulatory environment promotes innovation and investment in the sector.
To accommodate its expanding operations in Singapore, Ripple’s local office has witnessed a remarkable 50% increase in headcount year-on-year, with 50 full-time staff hired across various departments such as business development, compliance, finance, legal, and sales. Ripple aims to strengthen its presence in the country and take advantage of the flourishing licensed digital assets market.
Alderoty highlighted that the grant of the Major Payments Institution License places Ripple in esteemed company alongside reputable industry players like Coinbase and Circle. He underscored the importance of responsible actors participating in the regulated market and abiding by the established rules and guidelines. As of now, MAS has approved a total of 190 Major Payment Institution licenses and 11 Digital Payment Token Service licenses.
Local media 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 applicants decided to withdraw their submissions.
Notably, Binance, a prominent cryptocurrency exchange, withdrew from the Singaporean market and canceled its application for a Digital Payments Token license in December 2021.
Ripple’s attainment of the Major Payments Institution License in Singapore reinforces its position as a key player in the global blockchain and digital assets industry. With regulatory approval in hand, Ripple is well-positioned to further enhance its innovative solutions and contribute to the growing adoption of digital payment tokens and blockchain technology in Singapore and beyond.
