Ripple has received conditional approval for a federal banking license in the USA. If the company fully secures this license, it will be able to operate under U.S. banking regulations. With this license, Ripple could become a federally regulated financial institution according to U.S. banking laws.
This approval further strengthens Ripple's position in cross-border payments and digital asset settlement infrastructure in regulated financial markets. However, this development may not immediately and significantly increase the price of XRP.
New Step for Federal Authority License from OCC
The Office of Currency Control of the United States (OCC) paved the way for Ripple to establish a bank called 'Ripple National Trust Bank'.
To obtain full approval, Ripple is expected to meet certain regulations and operational requirements set by the OCC before the completion of its licensing process.
Even if approval is obtained, Ripple will not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks cannot legally accept public deposits or offer traditional loan products like need-based loans.
Instead, the main focus of Ripple National Trust Bank will be custody, settlement, and digital asset management services.
Despite all these limitations, this approval stands out as an important regulatory milestone for the company's long-term operational strategy. While it is known that state money transfer licenses impose geographic restrictions, a federal charter offers Ripple a regulatory advantage across the United States.
Such an approval could influence overall market sentiment but seems to primarily support infrastructure development and institutional adoption.
CEO Brad Garlinghouse publicly acknowledged this decision and referred to long-standing criticisms from the banking sector lobby regarding cryptocurrency companies.
