Ripple Labs, the San Francisco-based blockchain payments firm, has secured in-principle approval from the central bank of Singapore to offer regulated cryptocurrency products and services. The approval enables its subsidiary, Ripple Markets APAC, to expand its On-Demand Liquidity (ODL) service, which aims to enhance the efficiency of international transfers using XRP as an intermediary asset. This move comes as Ripple Labs continues to navigate an ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Ripple Labs has achieved a significant milestone in its global operations by receiving in-principle approval from the central bank of Singapore to offer regulated cryptocurrency products and services. The approval allows its subsidiary, Ripple Markets APAC, to scale the utilization of its On-Demand Liquidity (ODL) service, a key component of its blockchain-based payment network.
The ODL service, built on the Ripple distributed ledger, aims to streamline international transfers by leveraging XRP as a bridge currency. Ripple Labs’ expansion plans involve deploying ODL in approximately 40 payments markets worldwide, including countries like France, Sweden, and various nations across Africa.
According to company reports, Ripple Labs sold customers $2.9 billion worth of XRP in the last quarter for utilization on its blockchain payments network. Additionally, the firm invested $2.6 billion in purchasing the token on secondary markets during the same period.
The legal battle between Ripple Labs and the SEC began in December 2020 and is still ongoing. Despite the lawsuit, Ripple Labs disclosed that it had sold $14 billion worth of XRP to ODL customers by the end of March. The company acquired $11 billion worth of XRP from secondary markets during the same period. XRP, the sixth-largest cryptocurrency by market cap, trails behind tokens like USDC and Binance Coin (BNB).
While Singapore is known for its strict regulatory approach to cryptocurrencies, Ripple Labs CEO Brad Garlinghouse praised the country for providing clearer guidelines for digital asset firms. He highlighted the Monetary Authority of Singapore’s (MAS) role as a global leader in establishing rules that recognize digital assets’ innovation and real-world utility, acknowledging their benefits to the global financial system.
Ripple Labs’ approval in Singapore follows the footsteps of other crypto industry players. London-based exchange Blockchain.com obtained a provisional MAS license in October 2022, while Singapore’s own Crypto.com recently received its full license after provisional approval a year ago.
The expansion of U.S.-based crypto companies into foreign markets is seen as a response to a challenging regulatory environment at home. Coinbase has expressed interest in exploring opportunities in the European market, and venture capital firm Andreessen Horowitz (a16z) announced plans to open its first international office in the UK earlier this month.
Ripple Labs’ in-principle approval from the central bank of Singapore represents a significant milestone in its mission to offer regulated cryptocurrency products and services. The approval allows its subsidiary, Ripple Markets APAC, to expand its On-Demand Liquidity service, leveraging XRP’s potential for enhancing international transfers. Despite ongoing legal challenges, Ripple Labs continues to make strategic moves globally, navigating regulatory landscapes and seeking opportunities in foreign markets. As the crypto industry evolves, Ripple Labs aims to solidify its position as a leading player in the blockchain payments sector. Singapore serves as a key strategic hub for its operations.
Source: https://bitcoinworld.co.in/ripple-labs-receives-central-bank-approval-for-regulated-crypto-offerings-in-singapore/