Ripple has received policy approval from the Monetary Authority of Singapore for a Payments Authority License application that will allow a local subsidiary to offer digital payment token products and services regulated in the city-state.
Ripple Receives Major Payment Institution License Approval from Singapore
The company said late Wednesday that the approval will also allow the company to further scale customer usage of its crypto-powered On-Demand Liquidity service.
The platform allows financial institutions to instantly send money across borders using XRP as a bridge currency.
Ripple CEO Brad Garlinghouse said in a statement that Singapore "continues to be a global leader in setting clear rules of the road to recognize the innovation and real-world utility of digital assets and the benefits they bring to the global financial system."
Chief legal officer Stu Alderoty said many other countries are looking at Singapore's "early leadership in developing a clear taxonomy and licensing framework".
In an interview, Alderoty stated that Ripple needs to take a few more steps to finalize the application in order to get final approval from the country.
Circle acquired the Major Payment Institution license in Singapore earlier this month. Crypto.com also got the license on June 1 and said it may continue to expand its Digital Payment Token services in the country.
Alderoty said in the interview that other countries, including the UK, the United Arab Emirates, and the broader European Union, are taking steps to define rules for crypto.
"It's not surprising that the vast majority of Ripple's business is outside the US, in these key hubs that offer regulatory clarity," he said, adding that the US is "losing."
*Not investment advice.