Singapore has taken a significant step toward becoming a global hub for blockchain, and Ripple has obtains approval for major payments. This groundbreaking development signifies a major milestone for Ripple and reinforces Singapore’s position as a fintech-friendly nation. Singaporean authorities have issued a total of 190 Major Payment Institution Licences, with 11 of them specifically allocated to Digital Payment Token companies.
Licence Enables Ripple’s Singapore Branch to Expand Regulated Services and Scale Crypto-Enabled ODL Platform
As Ripple obtains approval for major payments, it will enable its Singapore branch to provide regulated products and services related to digital payment tokens. Additionally, it will facilitate the expansion of customer usage of Ripple’s crypto-enabled On-Demand Liquidity (ODL) platform, which experienced a remarkable 5x growth in the country year-on-year.
In an interview with CoinDesk, Stu Alderoty, Chief Legal Officer of Ripple, expressed his satisfaction with Singapore’s progressive approach to regulating digital assets. Alderoty commended the licensing framework established by Singapore, which he believes successfully creates a transparent classification system for digital assets. He emphasized the balance achieved by Singapore in protecting consumer interests and market integrity while simultaneously fostering an environment conducive to innovation and investment.
Ripple’s Singapore Office Experiences Rapid Growth with Expanded Team and Key Hires
Ripple announced a significant boost in its Singapore office, witnessing a 50% year-on-year surge in its headcount. The office now boasts a full-time staff of 50 individuals, with strategic hiring taking place in crucial areas, including business development, compliance, finance, legal, and sales. This expansion reflects Ripple’s commitment to strengthening its presence in Singapore and signifies its dedication to supporting various operational functions within the country.
Alderoty highlighted that Ripple’s significant expansion is largely attributed to the company’s ability to tap into the flourishing licensed digital assets market in Singapore. This market accessibility has played a pivotal role in driving Ripple’s rapid ramp-up and growth in the country.
Alderoty noted that Singapore has been successful in attracting reputable entities to its digital assets landscape. Regarding Ripple’s license, he emphasized that being in the company of established players like Coinbase, Circle, and others demonstrates the presence of genuine businesses and tangible products. Alderoty also emphasized the commitment of these entities to adhere to the regulatory framework once it is clearly defined.
MAS Grants Numerous Major Payment Institutions and Digital Payment Token Service Licences
To date, the Monetary Authority of Singapore (MAS) has granted approval for 190 Major Payment Institution licenses along with 11 licenses specifically designated for Digital Payment Token Services. According to local media reports, MAS has received over 680 applications for payment services licenses since January 2020. Out of these, 17 applications were rejected, and 214 applicants chose to withdraw their applications. Additionally, Binance, a prominent cryptocurrency exchange, withdrew from Singapore and canceled its Digital Payments Token license application in December 2021.
As Ripple obtains approval for major payments in Singapore, it marks a significant milestone for both the company and the nation’s fintech ecosystem. Singapore’s forward-looking regulatory approach has attracted global players seeking to harness the potential of blockchain and digital payment innovations.
With this license, Ripple gains the opportunity to provide regulated digital payment token products and services while scaling its crypto-enabled on-demand liquidity platform. The growing licensed digital assets market in Singapore has been instrumental in Ripple’s expansion, reflected in the substantial increase in its Singapore office headcount. The Monetary Authority of Singapore’s approval of numerous major payment institution licenses and digital payment token service licenses further solidifies Singapore’s position as a leading fintech and blockchain hub. The future looks promising as Ripple continues to revolutionize cross-border payments with its cutting-edge technology.