Ripple, a prominent blockchain payment firm, recently achieved a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This is a significant milestone for the company as it empowers Ripple to provide regulated digital asset payment services within the country. The licence pertains specifically to Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd. This news comes as a victorious moment for the company as they kept prioritizing the adoption of cryptocurrencies in the Asia Pacific region because this region belonged to the firm’s one of the fastest growing areas.
Background of Ripple
Ripple operates as a blockchain-powered digital payment network and protocol with its own cryptocurrency, XRP. The company’s XRP Ledger was designed to facilitate faster and cheaper transactions globally. The team at Ripple identified the pressing concern of time and cost involved in the legacy financial system. Under normal situations, it takes around one to four business days to send funds overseas and is quite expensive. With its payment settlement asset exchange and remittance system similar to the Swift system utilized by banks and financial intermediaries, Ripple focused on making international money transfers more secure and reliable.
The native token, XRP, is a bridging currency that functions as a connector between the hard-to-match fiat currencies. In simple words, the users can if there is no market maker facilitating the exchange of one particular currency to another, individuals have the option to purchase XRP tokens using the currency they own and subsequently use these tokens to acquire the currency they desire. The token gained immense popularity because of its ability to settle cross-border transactions in less than five seconds and at a relatively cheaper cost on the open-source XRP Ledger.
Ripple Obtains Major Payment Institution (MPI) Licence
After the longstanding legal dispute that Ripple went through, obtaining a Major Payment Institutions Licence comes as a massive victory for the company. As per the recent update, this digital asset license is granted by the Monetary Authority of Singapore and allows Ripple to provide a regulated digital asset token service within the country of Singapore. Singapore firm being the headquarters for the Asia Pacific region, this nation has played a crucial role in shaping Ripple’s business endeavors. Brad Garlinson, the CEO of Ripple stated that they have recruited exceptional talents and leaders in the Singapore region increasing the employee count over the year and working progressively towards growing their presence within the jurisdiction. He further added that under the supervision of MAS, Singapore has transferred into a prominent center for fintech and digital assets, skillfully managing the balance between consumer protection, innovation, and responsible growth.
As the Asia Pacific region continues to embrace blockchain technology and cryptocurrencies, Ripple’s acquisition of the Major Payments Institution (MPI) license from the Monetary Authority of Singapore is a testament to its dedication to regulatory compliance and its strategic focus on the Asia Pacific market. This achievement not only positions Ripple among the key players in the evolving digital assets market but also taglines it as a trusted and regulated player. This victory undoubtedly enhances Ripple’s growth opportunities, attracting both institutional and individual users to secure and regulation-compliant digital asset solutions.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
