SINGAPORE - Blockchain payments company Ripple has been given an in-principle approval by the Monetary Authority of Singapore for its licence application in the Republic, which serves as its Asia-Pacific headquarters, the company said in a release on Thursday.
This will allow the group’s Singapore entity, Ripple Markets Apac, to offer digital payment token products and services in the Republic. It applied for the major payment institution licence under the Payment Services Act.
The American company, which opened its Singapore office in 2017, has been operating under exemption from holding a licence under the Act since 2020.
In the past year, the firm doubled its headcount here to almost 50, adding to key functions such as business development, compliance, finance, legal and sales.
Ripple said 90 per cent of its business is global, and that Singapore is one of its fastest-growing markets and high on the list for recruiting.
The group said it has experienced “unprecedented business momentum”, with about 60 per cent of global payments over RippleNet sent through on-demand liquidity (ODL) in 2022.
RippleNet is a decentralised network of banks, financial institutions, and payment providers worldwide. It uses Ripple’s distributed ledger technology for payments.
ODL is the product the company offers to businesses, where the cryptocurrency token XRP is used to settle cross-border transactions instantly.
In 2022, ODL volume flowing through Singapore grew more than five times year on year, Ripple said.
“Singapore is a leading global financial centre, and a prominent gateway to business in Asia-Pacific,” said the group’s chief executive Brad Garlinghouse in the release, adding that the in-principle approval reaffirms its commitment to the region.
The development comes as United States regulators crack down on the crypto sector, driving many companies to diversify their operations outside the country.
The company is currently in a legal battle with the US Securities and Exchange Commission (SEC).
The SEC has accused Ripple of breaching securities rules, and a court decision is widely expected in end-September.
Mr Stuart Alderoty, Ripple’s chief legal officer, told The Straits Times that places such as Singapore, Britain, the United Arab Emirates and the broader European Union have made huge strides in the past few years towards defining rules for crypto, such as licensing frameworks and having a clear taxonomy.
Singapore, he noted, has been one of the earliest champions of developing a clear and workable regulatory framework for blockchain and crypto.
“While the US flounders, Ripple will continue investing our time and resources in countries like Singapore,” Mr Alderoty said.
Outside of Singapore, Ripple has 14 other offices in the US, London, Mumbai, Sydney, Shanghai and Dubai.
