Ripple announced that the Monetary Authority of Singapore, the country's central bank, has given it the green light to procure a Major Payment Institution Licence. Through this authorization, Ripple is now eligible to deliver regulated digital payment token products and services, as well as expand utilization of XRP, its closely affiliated cryptocurrency. The news follows Ripple's ongoing legal disputes with the Securities and Exchange Commission. It said the Singapore license was granted after the company demonstrated a "strong commitment to regulatory compliance".
Ripple, a blockchain company, revealed on Thursday that it has been granted an in-principle approval of a Major Payment Institution Licence by the Monetary Authority of Singapore, the country's central bank. This license will permit Ripple to provide regulated digital payment token products and services and process cross-border transactions utilizing XRP, a cryptocurrency which the company is strongly related to, to its customers, comprising of banks and financial institutions.
XRP was valuing around 50 cents late Wednesday night. Aside from XRP, Ripple, a San Francisco-based fintech company, is well-known for its blockchain-driven global messaging service, RippleNet, which is used by banks and other financial institutions to carry out massive transfers of funds, similar to the Organization for the Advancement of Structured Information Standards (OASIS).
A Securities and Exchange Commission allegation that Ripple, co-founder Christian Larsen and CEO Brad Garlinghouse carried out an illicit securities offering that unlawfully raised more than $1.3 billion through the sales of XRP has been denied by Ripple, instead, professing that XRP is not a security that is subject to rigorous regulations but instead a currency.
Ripple also noted that Singapore is one of the most extensive currency corridors from which Ripple transfers funds using XRP and that the Singapore license was acquired after the company demonstrated an "unwavering commitment to regulatory compliance".
Ripple said that a majority of its global on-demand liquidity transactions flow through Singapore, which is the company's regional Asia-Pacific headquarters. Ripple has thus increased its headcount in the city significantly over the past year, with employees covering business development, compliance, and finance functions. When contacted by CNBC, the Singaporean financial regulator, MAS, did not immediately provide a comment. This regulator recently criticized Three Arrows Capital for providing false information concerning their move to the British Virgin Islands in 2021. Singapore is renowned for its openness to financial tech and cryptocurrency, having allowed firms like DBS, Revolut, and Crypto.com to make their home there. Garlinghouse will be speaking at Point Zero Forum in Zurich, Switzerland, next Wednesday about the revival of digital asset investment and regulation. In addition to this, Ripple recently spent $250 million to acquire Metaco, a crypto custodial services provider, to bolster its presence in the Swiss market and to lessen its dependence on the U.S. Garlinghouse also said that Ripple will have used over $200 million in legal fees by the time its legal ordeal with the SEC is resolved.
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