Ripple has received preliminary regulatory approval from Singapore’s financial regulator to provide digital asset payments and token products and services in the country.
This regulatory approval allows Ripple to provide regulated services and products related to digital payment tokens. This enables the company to enhance cross-border transfers of the XRP token.
As a result of this significant development, $XRP has experienced a rally, reaching a price of $0.50.
XRP Price Stalls At $0.49 After Ripple License Announcement
At press time, the $XRP token is trading at $0.49, with a 24-hour trading volume of $927 million, representing a downtrend of 1.68% in the same period.
Prior to the downtrend, the asset had been on bullish momentum. In the past seven days, $XRP saw an uptrend of 1.06% and a 4.32% surge in the past month.
Its year-to-date (YTD) value also indicates a positive trend with a healthy 43.17% increase.
$XRP’s current price trails above both simple moving averages (SMAs), indicating bullish sentiment.
Its price trails above the 50-day simple moving average (SMA) of $0.47 for the short term and the 200-day simple moving average (SMA) of $0.47 for the long term.
However, investors should note that any continuous drop in value for $XRP will see the asset fluctuate between its 200-day SMA and 50-day SMA.
Regarding technical analysis, $XRP had a false breakout at the 50% Fibonacci retracement level of $0.48. However, the recent decline in value has seen the asset drop back to the 50% FIB level.
This level currently supports the token, and a steady bullish rally could see the asset rebound from this point toward higher price levels.
The relative strength index (RSI) reading of 46.52 indicates that the asset still resides in the underbought zone. However, the moving average convergence divergence (MACD) reflects a sell view.
While the current price movement of $XRP is modest, recent developments from Ripple could increase the asset value.
Ripple Receives Provisional Regulatory Approval in Singapore
Ripple has taken a significant step in the crypto industry. The company’s subsidiary, Ripple Markets APAC Pte Ltd., based in Singapore, has received preliminary approval for its Major Payments Institution License application from the Monetary Authority of Singapore (MAS).
We’re honored to obtain In-Principle Approval of a Major Payments Institution License from the @MAS_sg – allowing us to offer regulated digital asset products and services, and scale customer use of #ODL.
Learn more: https://t.co/8Ylc3lZSeg
— Ripple (@Ripple) June 22, 2023
In a statement released on June 22, Ripple confirmed the regulatory approval from MAS.
This would enable Ripple Markets Asia Pacific to offer regulated digital payment token products and services while expanding its On-Demand Liquidity (ODL) solution.
Ripple’s ODL service allows customers to transfer XRP globally without third parties, like in traditional banking.
Through its subsidiary, Ripple uses XRP as a bridge between currencies to facilitate faster cross-border transactions for payment providers and banks compared to traditional payment systems.
Headquartered in San Francisco, the company is renowned for its cryptocurrency XRP and blockchain-based interbank messaging services.
The company utilizes distributed ledger technology, which serves as the foundation for various cryptocurrencies, to provide innovative financial technology solutions.
This is designed to facilitate large-scale fund transfers between banks and financial institutions, bearing similarities to the global interbank messaging system, SWIFT.
This regulatory approval marks a significant milestone for Ripple, opening doors for expansion into the Southeast Asian market. It also represents a substantial stride towards revolutionizing cross-border transactions.
Ripple’s Expansion in Singapore
Singapore’s strategic location, robust financial infrastructure, and supportive regulatory environment have positioned it as an ideal hub for Ripple’s expansion into the wider Asia-Pacific market.
In 2022, Ripple experienced an unprecedented surge in its global business momentum for its On-Demand Liquidity solution. A significant portion of this growth was attributed to its operations in Singapore.
The remarkable trajectory prompted Ripple to expand its workforce in Singapore, thereby doubling its staff across critical departments.
These include business development, compliance, finance, legal, and sales. The company also aims to strengthen its presence in this rapidly expanding region.
Meanwhile, Ripple’s CEO, Brad Garlinghouse, commended the Singaporean regulator for its forward-thinking and innovative approach to cryptocurrency-related services.
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! https://t.co/Mt1J3qMeI0
— Brad Garlinghouse (@bgarlinghouse) June 22, 2023
He expressed confidence that the country would serve as a notable gateway for Ripple’s business activities in the Asia-Pacific region.
Stu Alderoty, Ripple’s chief legal officer, acknowledged Singapore’s pioneering role in shaping the regulatory landscape.
1/ @MAS_sg has built a workable framework that truly unites consumer protection, market integrity and innovation. They’ve also outlined a clear taxonomy to classify and regulate digital assets – making it possible for companies like Ripple to build and offer compliant products. https://t.co/KLYzWRrST0
— Stuart Alderoty (@s_alderoty) June 22, 2023
He highlighted Singapore’s efforts to establish a clear taxonomy and licensing framework as an example for other regulators.
Over the years, Singapore has gained recognition as a favorable jurisdiction for financial technology and cryptocurrency ventures.
The country has approved the operations of popular companies like DBS, Revolut, and Crypto.com.
Ripple Finds Success Outside the United States
Ripple encountered minimal legal obstacles in complying with Singapore’s regulations compared to other jurisdictions.
In line with its commitment to regulatory compliance, Ripple applied for an institutional payment license under Singapore’s Payment Service Act.
However, since December 2020, the company has been entangled in a lawsuit with the U.S. Securities and Exchange Commission (SEC).
Trying something new – some thoughts from me on the events (specifically the release of the Hinman documents) of this week. For me, this has all had a personal bent to it – and felt like it warranted some personal comments. pic.twitter.com/k4dYeQGhsN
— Brad Garlinghouse (@bgarlinghouse) June 16, 2023
The regulatory body accused Ripple of offering its XRP token as an unregistered security. The outcome of this high-profile case is expected in the coming months.
On a positive note, the Monetary Authority of Singapore (MAS) released the Purpose-Bound Money white paper on June 21. This outlines standards for fintech firms offering digital money services in Singapore.
This regulatory framework aligns with Ripple’s vision and supports its operations in the country.
In addition, Ripple has engaged in significant collaborations. Notably, the company partnered with Banco de la República (the central bank of Colombia) to conduct a pilot program for a Central Bank Digital Currency (CBDC) using the XRP Ledger.
Colombia's Central Bank has partnered with Ripple, a leading blockchain technology company.
As part of this collaboration, Banco de la República, in coordination with the Ministry for Information and Communications Technologies (MinTIC), will conduct a pilot program… pic.twitter.com/bDAovCPfez
— Asia Token Fund (@AsiaTokenFund) June 17, 2023
Ripple has also formed partnerships with central banks in Montenegro and Thailand, as well as various regional banks and financial institutions worldwide.
As per the PM of Montenegro, the nation launched a pilot project to build the first digital currency or stablecoin for Montenegro, in cooperation with@Ripple and the Central Bank. https://t.co/osWT3wocPk
— Leonidas (@LeoHadjiloizou) January 29, 2023
With its expansion in Southeast Asia and collaborations with global financial institutions, Ripple is positioned to play a pivotal role in shaping the future of cross-border payments and digital finance.
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