The Singapore subsidiary of US-based blockchain company Ripple has obtained in-principle regulatory approval from the Monetary Authority of Singapore . By obtaining a Major Payments Institution Licence in Singapore, Ripple aims to offer regulated digital payment token products and services in the city-state while scaling the use of its crypto-enabled On-Demand Liquidity (ODL) service.

According to the company press release, ODL gained momentum around the world in 2022, much of this growth being driven by its Singapore operations. Representatives from Ripple talked about the in-principle licence approval and highlighted that it reaffirms the company’s commitment to expand in the region while engagin with regulators in a proactive manner. Ripple officials also mentioned the global effort to create regulatory frameworks for crypto, particularly Singapore’s early work in developing a clear taxonomy and licencing framework.

Ripple offers blockchain and crypto solutions that aim to change how the world moves, manages, and tokenises value. Ripple’s business solutions were designed to solve inefficiencies that have long defined the status quo, and the company works to identify use cases where crypto technology can inspire new business models and create more opportunities for people. Other important developments from Ripple In June 2023,  Ripple collaborated with the Colombian central bank to demonstrate the utility of blockchain to the general public.

As part of this partnership, Banco de la República will work with both Peersyst and Ripple on a blockchain pilot programme on the XRP ledger. The end goal is to leverage Ripple’s CBDC platform to pilot use cases that will improve Colombia’s high-value payment system. Previously, the XRP ledger CBDC platform was used for other similar pilot programmes in regions such as Hong Kong, Montenegro, Palau, and Bhutan.

In the same month,  Ripple has taken an undisclosed minority stake in Luxembourg-based cryptocurrency exchange Bitstamp. This development came to light through a transcript of Galaxy Digital’s shareholder conference call, which revealed that Ripple acquired the stakes from Pantera Capital, which is a US-based digital asset investment firm, while Galaxy Digital took on the role of an advisor in the deal. In May 2023, Ripple worked to improve the capabilities of its CBDC platform to better meet the requirements of financial institutions, central banks, and governments.

The company launched its Central Bank Digital Currency solutions and private ledger for CBDCs in 2022. Some of the primary benefits of digital currencies such as CBDCs and stablecoins, according to Ripple, include faster transaction speeds, lower costs, and reduced settlement times. Ripple’s solutions were designed to expand these benefits to also include lowered energy use compared to that of traditional payment methods or some cryptocurrencies.

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