Singapore Embraces Ripple: In-Principle Regulatory Approval Achieved

In an exciting development, Ripple has made a groundbreaking announcement today. The renowned blockchain technology company revealed that it has successfully obtained in-principle approval for a Major Payments Institution License from the Monetary Authority of Singapore (MAS), the esteemed central bank and regulatory authority of the nation.

This prestigious license marks a significant milestone for Ripple's Singapore branch, granting it the authority to provide regulated digital payment token products and services. Moreover, this achievement will enable Ripple to amplify the adoption and utilisation of its crypto-enabled On-Demand Liquidity (ODL) platform, which has experienced remarkable growth in the country, witnessing a staggering five times increase year-on-year.

Chief Executive Officer of Ripple, Brad Garlinghouse, expressed on a post on Ripple, “Singapore is a leading global financial center, and a prominent gateway to business in Asia Pacific. We’re incredibly proud to receive an in-principle license from the MAS, reaffirming our commitment to the region and ongoing proactive engagement with regulators globally.”

Chief Legal Officer of Ripple, Stu Alderoty also mentioned on the post, “As more countries develop regulatory frameworks for crypto, many are looking to Singapore’s early leadership in developing a clear taxonomy and licensing framework. This in-principle regulatory approval from the MAS will enable us to better support our forward-looking customers looking to hone in on blockchain and crypto technologies to build a more inclusive and borderless financial system.”

Ripple's Singapore office has experienced a remarkable surge in growth, with a noteworthy 50% increase in headcount compared to the previous year, resulting in a team of 50 dedicated full-time staff members. This expansion encompasses strategic hires across pivotal functions including business development, compliance, finance, legal, and sales, highlighting Ripple's commitment to bolstering its presence in the country. An integral factor driving this accelerated growth, as explained by Stu, is Ripple's ability to tap into the flourishing licensed digital assets market in Singapore.

MAS has made significant strides in the licensing landscape, having granted an impressive total of 190 Major Payment Institution licenses and 11 Digital Payment Token Service licenses thus far. This highlights the robust regulatory framework established by MAS to facilitate payment services in Singapore. However, an intriguing aspect lies in the numbers behind these licenses.

Local media reports indicate that MAS has received a staggering 680 applications for payment services licenses since January 2020. Equally intriguing, 17 applications have been rejected while 214 applicants have chosen to withdraw their applications.

What opportunities and advantages does this thriving market present for Ripple? How will the strengthened team and increased local presence contribute to Ripple's strategic objectives?