Ripple has received conditional approval for a federal banking license, which could potentially allow it to operate in accordance with U.S. banking laws. If granted, this license will enable Ripple to function as a federally regulated financial institution under American banking laws.
This approval strengthens Ripple's position in the cross-border payments sector and in the infrastructure for settlements with digital assets in regulated financial markets. However, this event may not have an immediate or significant impact on the market price of XRP.
The context of regulatory approval
The Office of the Comptroller of the Currency (OCC) has opened the opportunity for Ripple to establish Ripple National Trust Bank.
To obtain final approval, Ripple still needs to meet certain regulatory and operational requirements set by the OCC before the licensing process is completed.
Even if approved, Ripple will not operate like traditional banks such as Bank of America or JPMorgan Chase. The operations of trust banks are legally restricted: they are prohibited from accepting deposits from the public or offering standard credit products, such as consumer loans.
Instead, Ripple National Trust Bank's activities will be primarily focused on providing custody, settlement, and management services for digital assets.
Despite existing restrictions, the approval obtained represents a significant regulatory milestone in the company's long-term operational strategy. Unlike money transfer licenses issued at the state level, which geographically limit operations, a federal license provides regulatory coverage across the entire country.
Such permission can influence broader market sentiment; however, its primary function is to support infrastructure development and facilitate institutional adoption.
CEO Brad Garlinghouse publicly commented on this decision, mentioning the long-standing criticism of cryptocurrency companies from banking industry lobbyists.
