Ripple has received conditional approval for a federal banking license, which could allow it to operate under banking regulations in the United States. If granted, the license would allow Ripple to operate as a federally regulated financial institution under U.S. banking law.
The approval reinforces Ripple's position in cross-border payments and in the settlement infrastructure of crypto assets in regulated financial markets. However, this development may not result in an immediate or significant impact on the market price of XRP.
The OCC paves the way for the federal charter
The Office of the Comptroller of the Currency (OCC) has paved the way for Ripple to establish the Ripple National Trust Bank.
To receive full approval, Ripple still must meet specific regulatory and operational requirements from the OCC before the license is finalized.
Even if approved, Ripple would not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks have legal restrictions preventing them from accepting public deposits or offering traditional credit products like consumer loans.
Instead, the Ripple National Trust Bank would primarily focus on custody, settlement, and management of crypto assets.
Despite the limitations, the approval represents an important regulatory milestone for the company's long-term operational strategy. Unlike state money transmitter licenses, which geographically limit operations, a federal charter allows regulatory coverage across the country.
This approval may influence the overall market sentiment, but primarily supports the development of infrastructure and institutional adoption.
CEO Brad Garlinghouse publicly acknowledged the decision, referencing long-standing criticisms from banking industry lobby groups towards cryptocurrency companies.
