The license will allow Ripple to provide better support to its “forward-looking customers”, as well as facilitate the process of building a “more inclusive and borderless financial system”.
Blockchain solutions provider Ripple has been granted in-principle approval of the Major Payments Institution License from the Monetary Authority of Singapore (MAS). As a result, its subsidiary in Singapore – Ripple Markets APAC Pte Ltd – is one of a few companies that can operate in the country and offer regulated digital payment token products and services to citizens.
Ripple CEO Brad Garlinghouse commented:
“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.”
In-principle regulatory approval from the MAS is a significant milestone for Ripple which has been strengthening its position in Singapore since 2017, when it opened its Asia Pacific headquarters. As Ripple’s Chief Legal Officer Stu Alderoty has explained, the license will allow the company to provide better support to its “forward-looking customers”, 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 effect in Singapore, it streamlined the payment services regulatory framework under a single piece of legislation. According to the PSA, there are three classes of licenses under which the MAS regulates, one of them is the Major Payment Institution which allows the license holder to carry out any number of payment services if the activity exceeds the specific threshold limits.
The license allows the holders to offer account issuance services, domestic money transfer services, cross-border money transfer services, merchant acquisition services, e-money issuance services, digital payment token services, and money-changing services.
Since 2020, MAS has received as many as 680 applications for payment services licenses. Some applications were rejected, and about 214 applications were withdrawn.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 developmental considerations” as a reason. It has continued operating in Singapore, with a shift of the focus to blockchain innovation.
So far, MAS has approved 190 Major Payment Institution licenses and 11 Digital Payment Token Service licenses.
Ripple’s Growth in APAC
Ripple’s presence in the Asia Pacific region has been strong, with the company seeing Singapore as one of its fastest-growing markets and the highest on the list for recruiting. Over the past year, its headcount has doubled, reaching 50 employees.
Brad Garlinghouse said:
“Singapore is a leading global financial center, and a prominent gateway to business in Asia-Pacific.”
Ripple’s transactions have surged by 130% year-over-year. In addition, its On-Demand Liquidity (ODL) service in the APAC has grown more than five times in 2022 in response to increased demand for quick settlements and immediate access to funds. Currently, Ripple is focusing on further strengthening its position in the region.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
