Ripple Teams Up with Singapore’s Monetary Authority to Build Blockchain‑Based Settlement Layer for Trade Finance
Singapore – 25 March 2026 – Ripple, the payments‑technology firm behind the XRP Ledger, announced today that it has been selected to join a pilot programme led by the Monetary Authority of Singapore (MAS). The initiative, part of MAS’s BLOOM (Borderless, Liquid, Open, Online, Multi‑currency) framework, will create a blockchain‑enabled cross‑border settlement infrastructure for trade‑finance transactions, in collaboration with the trade‑finance platform Unloq.
How the pilot will work
The trial will integrate Unloq’s end‑to‑end trade‑finance solution— which consolidates trade obligations, settlement triggers, and financing workflows— with Ripple’s enterprise‑grade ledger and its regulated stablecoin, RLUSD. RLUSD, a USD‑pegged token issued on the XRP Ledger, complies with Singapore’s stable‑coin regulatory requirements that mandate a single G10‑currency peg and full‑reserve backing.
Under the BLOOM umbrella, MAS is exploring the use of tokenised bank liabilities and regulated stablecoins to modernise settlement processes. By linking these digital assets to real‑world trade events (e.g., proof of shipment), the pilot aims to reduce the latency and opacity that plague traditional cross‑border payments.
Strategic context
Singapore has positioned itself as one of the most progressive jurisdictions for digital‑asset regulation. In August 2023, MAS released a comprehensive framework for stablecoins that has become a reference point for other regulators. Ripple’s RLUSD was explicitly designed to satisfy those standards, and the stablecoin’s circulating supply has grown from just over $1 billion at the end of 2023 to roughly $1.43 billion today.
Ripple’s recent acquisitions— the $200 million purchase of Rail, a stablecoin‑infrastructure platform, and the integration of Hidden Road (now Ripple Prime) as a global prime‑brokerage service— signal a broader push to embed its stablecoin and settlement tools into institutional finance pipelines. The firm is also extending RLUSD’s reach through partnerships such as the one with OpenPayd, which facilitates euro and sterling cross‑border transfers.
Potential impact on trade finance
- Reduced settlement risk – By anchoring payment release to verified trade events, the system can provide real‑time risk visibility for all parties.
- Faster liquidity for SMEs – Small and medium‑sized enterprises, which often endure prolonged funding gaps while waiting for settlement, may gain quicker access to financing.
- Regulatory confidence – Leveraging a stablecoin that meets MAS’s full‑reserve and peg requirements could ease concerns from banks and regulators about token‑based payments.
- Scalable multi‑currency flows – BLOOM’s multi‑currency ambition, combined with Ripple’s expanding stablecoin suite, may eventually support settlements in a range of fiat‑pegged tokens beyond the US dollar.
Challenges and considerations
- Interoperability – Integrating legacy banking systems with blockchain solutions remains technically complex. Success will hinge on seamless API connections and robust data standards.
- Adoption curve – Convincing trade‑finance participants to shift from entrenched SWIFT‑based processes to a token‑driven model will require clear cost‑benefit evidence.
- Regulatory evolution – While Singapore’s framework is advanced, other jurisdictions may lag, potentially limiting the cross‑border reach of the pilot’s architecture.
Key takeaways
- Ripple joins MAS’s BLOOM pilot, collaborating with Unloq to test a blockchain settlement layer for trade finance.
- RLUSD, Ripple’s regulated stablecoin, will be used to tokenise payments, meeting Singapore’s full‑reserve stablecoin rules.
- The project targets faster, more transparent settlement tied to real‑world trade triggers, potentially unlocking financing for SMEs.
- Ripple’s recent strategic acquisitions and partnerships underscore its ambition to become a core infrastructure provider for institutional digital‑asset flows.
- Success will depend on technical integration, user adoption, and the willingness of other regulators to recognise similar stablecoin frameworks.
The article was prepared with the assistance of AI tools and subsequently reviewed, edited, and fact‑checked by the editorial team.
Source: https://thedefiant.io/news/tradfi-and-fintech/ripple-partners-with-singapore-mas-on-cross-border-settlement-infra
