22-6-2023 (SINGAPORE) Ripple, a San Francisco-based blockchain company, has received in-principle regulatory approval from the Monetary Authority of Singapore to operate in the country. The approval grants Ripple a Major Payment Institution Licence, which will enable the company to offer regulated digital payment token products and services, expanding cross-border transfers of XRP, a cryptocurrency closely associated with the company. Ripple’s on-demand liquidity service uses XRP as a bridge between currencies to process cross-border transactions much faster than they would over legacy payment rails. The license will enable Ripple to increase its customer base, which comprises banks and financial institutions.
The approval comes as a rare moment of good news for the cryptocurrency industry as the US tightens its policy back home. Ripple and its executives are currently battling the Securities and Exchange Commission (SEC) over allegations that they conducted an illegal securities offering that raised over $1.3 billion through sales of XRP. Ripple denies the allegations, contending that XRP is a currency rather than a security.
Singapore serves as Ripple’s regional Asia-Pacific headquarters, with a majority of its global on-demand liquidity transactions flowing through the country. Ripple has doubled its headcount in Singapore over the past year and plans to continue increasing its presence there. Singapore has gained a reputation for being a more crypto-friendly jurisdiction, opening its doors to major companies such as domestic banking giant DBS, British fintech firm Revolut, and Singapore-based crypto exchange Crypto.com.
Ripple’s CEO Brad Garlinghouse is due to speak at the Point Zero Forum in Zurich, Switzerland, next Wednesday to discuss the resurgence of innovation in digital assets through investment and thoughtful regulation. The company recently purchased Metaco, a crypto custody services firm, for $250 million to expand its reach in the Swiss market and diversify away from its home in the US. Ripple’s Garlinghouse said the firm will have spent more than $200 million in legal fees by the time its legal battle with the SEC is wrapped up.
