Ripple will become a bank as it has received conditional approval for a federal banking license. This may enable the company to operate in accordance with American banking regulations. If the company receives a final license, it will operate as a federally regulated financial institution under U.S. banking law.
The approval strengthens Ripple's position in cross-border payment settlement and digital asset servicing infrastructure in regulated financial markets. However, it may not immediately or significantly impact the market price of XRP.
Ripple will become a bank: A path opened by the federal license
The Office of the Comptroller of the Currency (OCC) opened the way for Ripple to establish Ripple National Trust Bank.
To receive full approval, Ripple still needs to meet specific regulatory and operational requirements set by the OCC before finalizing the license.
Even after obtaining approval, Ripple will not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks are legally prohibited from accepting deposits from the public and cannot offer standard credit products, such as consumer loans.
Instead, Ripple National Trust Bank will focus mainly on trust services, settlement, and digital asset management.
Despite the limitations, the approval represents an important regulatory step in the company’s long-term operational strategy. Unlike state money transmission licenses, which limit the geographical scope of operations, a federal banking license provides nationwide regulatory coverage.
Such approval may affect overall market sentiment, but primarily supports infrastructure development and institutional adoption.
CEO Brad Garlinghouse publicly commented on the decision, mentioning the long-standing criticism of cryptocurrency companies from banking industry lobbyists.
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