San Francisco-based blockchain company Ripple has secured in-principle approval from the Monetary Authority of Singapore (MAS). The license lets the controversial company offer regulated digital payment token services.
This development supports Singapore's reputation as a significant tech and financial hub, home to prominent firms such as DBS.
cardThe license will allow Ripple to increase the transnational movement of its associated cryptocurrency, XRP, primarily serving its banking and financial institution clients.
In a tweet, Ripple CEO Brad Garlinghouse has expressed satisfaction with this development, noting it as a reiteration of Ripple's commitment to the region and its proactive engagement with regulators on a global scale.
This approval is of particular relevance in a city that is recognized for its supportive stance towards fintech and cryptocurrency. It further aligns Ripple with Singapore's forward-looking regulatory environment.
The announcement comes during Ripple's ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).
Despite the legal challenges, Ripple's payment solution recorded significant growth last year, providing businesses and financial institutions with the capability to streamline their cross-border payments.
The new license places Ripple in a stronger position to enhance its crypto-enabled payment services across the APAC region.
Singapore's active role in fintech and its practical, innovation-oriented approach towards cryptocurrency could serve as a model for other countries crafting regulatory frameworks for crypto.
Ripple, which established its Asia Pacific headquarters in Singapore in 2017, anticipates continued regional growth and expansion.