Ripple has received conditional approval for a central bank license in the United States, which may allow Ripple to operate under U.S. banking regulations if approved. This license would enable Ripple to conduct business as a financial institution regulated by the U.S. government.
This approval strengthens Ripple's position in providing cross-border payment services and digital asset payment infrastructure in the regulated financial market. However, this development may not immediately impact the market price of XRP or to a significant degree.
OCC has paved the way to apply for a federal license.
The Office of the Comptroller of the Currency (OCC) has paved the way for Ripple to establish Ripple National Trust Bank.
However, Ripple must still fully comply with the regulatory requirements and operational stipulations of the OCC before the license approval is finalized.
Although Ripple has received approval, it will not operate like traditional banks such as Bank of America or JPMorgan Chase, as trust banks are legally prohibited from accepting deposits from the general public or providing traditional loans such as consumer loans.
Conversely, Ripple National Trust Bank will focus primarily on providing asset custody, settlement services, and digital asset management.
Despite these limitations, this approval marks another important regulatory milestone for the company's long-term business strategy, unlike state-level financial intermediary licenses that limit service areas; the federal charter will provide Ripple with legal protection nationwide.
This approval, while affecting the overall market sentiment, primarily supports the development of infrastructure and institutional adoption.
Brad Garlinghouse, the CEO of the company, publicly commented on this decision, addressing the long-standing criticisms from interest groups in the banking industry towards the crypto company.
