The license will allow Ripple to better support its “forward-looking customers,” as well as facilitate the process of building a “more inclusive and borderless financial system.”
Ripple, a Blockchain solutions provider, has been granted Initial Approval for a Major Payments Institution License from the Monetary Authority of Singapore (MAS). As a result, its Singapore subsidiary – Ripple Markets APAC Pte Ltd – is one of the few companies that can operate in the country and provide regulated digital payment token products and services to citizens.
Brad Garlinghouse, CEO of Ripple, commented:
Singapore is a leading global financial center and a preeminent gateway for business in the Asia Pacific region. We are extremely proud to have received a license in principle from MAS, which underscores our commitment to the region and continued proactive engagement with regulators globally.”
The regulatory approval in principle from the MAS is a significant milestone for Ripple which has cemented its position in Singapore since 2017, when it opened its headquarters in the Asia Pacific region. As Stu Alderoty, Ripple’s chief legal officer, explained, the license would allow the company to better support its “forward-looking clients,” as well as facilitate the process of building “a more inclusive and borderless financial system.”
What is a major payment institution license?
Back in 2020, the Payment Services Act (PSA) came into force in Singapore, streamlining the regulatory framework for payment services under a single piece of legislation. According to the PSA, there are three categories of licenses under which MAS is regulated, one of which is the principal payment institution which allows the license holder to carry out any number of payment services if the activity exceeds the specified threshold limits.
The license allows its holders to provide account issuance services, domestic money transfer services, cross-border money transfer services, merchant acquisition services, electronic money issuance services, digital payment token services, and money transfer services.
Since 2020, MAS has received up to 680 applications for payment services licenses. Some applications were rejected and some 214 applications were withdrawn. For example, Binance’s arm in the region – Binance Asia Services (BAS) – withdrew its application for a license from MAS in 2021, citing its “strategic, commercial and development considerations” as the reason. She continued to work in Singapore, with the focus shifting to blockchain innovation.
To date, MAS has approved 190 major payment institution licenses and 11 digital payment token service licenses.
Ripple’s growth in the Asia-Pacific region
Ripple’s presence has been strong in the Asia-Pacific region, with the company listing Singapore as one of its fastest growing markets and top on the recruiting list. Over the past year, its staff has doubled to 50 employees.
Brad Garlinghouse He said:
Singapore is a leading global financial center and a preeminent gateway for business in the Asia Pacific region.
Ripple transactions are up 130% year over year. In addition, our On-Demand Liquidity (ODL) service in the Asia-Pacific region grew more than five times in 2022 in response to growing demand for fast settlements and instant access to funds. Ripple is currently focusing on strengthening its position in the region.
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Daria is a cryptocurrency enthusiast and a firm believer in the future of blockchain. Being a hospitality professional, she is interested in finding ways that blockchain can change different industries and take our lives to a different level.
