Ripple, a prominent blockchain company, announced on Thursday that it has secured in-principle regulatory approval to operate in Singapore. This development comes as a rare positive milestone for the cryptocurrency industry, which faces increasing regulatory pressures in the United States.
The Monetary Authority of Singapore (MAS), the country’s central bank, has granted Ripple an in-principle approval for a Major Payment Institution License. This license will enable Ripple to offer regulated digital payment token products and services, facilitating the expansion of cross-border transfers of XRP, a cryptocurrency closely associated with the company. As of late Wednesday, XRP was trading at approximately 50 cents.
San Francisco-based Ripple is widely recognized for its association with XRP and its blockchain-based interbank messaging services. The company’s on-demand liquidity service utilizes XRP as a “bridge” currency, allowing payment providers and banks to process cross-border transactions more efficiently compared to traditional payment systems. Additionally, Ripple operates Ripple Net, a blockchain-based international messaging system designed to facilitate large-scale fund transfers between banks and other financial institutions, akin to the global interbank messaging system SWIFT.
However, Ripple is currently embroiled in a legal dispute with the U.S. Securities and Exchange Commission (SEC). The SEC has charged Ripple, co-founder Christian Larsen, and CEO Brad Garlinghouse with conducting an illegal security offering that raised over $1.3 billion through XRP sales. Ripple denies these allegations, asserting that XRP is a currency, not a security.
Singapore, one of Ripple’s largest currency corridors, plays a crucial role in the company’s global on-demand liquidity transactions and serves as its regional Asia-Pacific headquarters. Over the past year, Ripple has doubled its headcount in Singapore across various key functions, including business development, compliance, and finance, and plans to further expand its presence.
Brad Garlinghouse, Ripple’s CEO, is scheduled to speak at the Point Zero Forum in Zurich, Switzerland, next week to discuss innovation in digital assets through investment and regulation. This follows Ripple’s recent $250 million acquisition of Metaco, a crypto custody services firm, to enhance its presence in the Swiss market and diversify beyond the U.S. Ripple anticipates spending over $200 million in legal fees by the conclusion of its SEC legal battle.
The Monetary Authority of Singapore was unavailable for immediate comment.
