The move comes amid a massive crackdown on the digital asset industry in the United States.
On June 21, Ripple stated that it had received in-principle regulatory approval to operate in Singapore.
The fintech firm has been granted a Major Payment Institution License from the Monetary Authority of Singapore, the country’s central bank.
Ripple CEO Brad Garlinghouse commented on the positive approach the Asian island nation has taken toward crypto.
“As a major global financial center, Singapore led the way in taking a pragmatic, innovation-first approach to crypto,”
As a major global financial center, Singapore led the way in taking a pragmatic, innovation-first approach to crypto – we’re incredibly proud @Ripple is one of a handful of firms (<20) to receive in-principle approval for a MAS MPI license for digital payment token services!
— Brad Garlinghouse (@bgarlinghouse) June 22, 2023
The new license will allow Ripple’s Asia-Pacific headquarters to offer digital payment token products and services. It will also allow the firm to expand cross-border payments using its native token XRP.
Ripple has doubled its headcount in its Singapore office, which the firm opened in 2017. The latest move is another pivot to Asia from a major American crypto firm as the screws tighten on the industry at home.
According to the firm, 90% of its business is global, and Singapore is one of its fastest-growing markets and high on the list for recruiting, reported the Straits Times.
Ripple added that it has experienced “unprecedented business momentum.” Around 60% of its global payments have been made on RippleNet through on-demand liquidity (ODL) last year. Singapore ODL volumes grew by five times last year, it added.
Stuart Alderoty, Ripple’s chief legal officer, said that Singapore 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,”
Ripple is among several prominent U.S. fintech firms eyeing moves overseas. These include Coinbase, Gemini, Galaxy Digital, and Paxo. Earlier this month, stablecoin issuer Circle was granted a Major Payment Institution (MPI) license from the Monetary Authority of Singapore.
Ripple’s native token, XRP, has gained 3.6% on the day, the majority of that since the news broke a few hours ago.
XRP was trading at $0.515 at the time of writing, having gained 6.7% over the past week. However, it has lagged behind Bitcoin and Ethereum in terms of weekly gains.
XRP is currently down 85% from its January 2018 peak price of $3.40 but a win against the SEC may dramatically change that.
