Ripple has received conditional approval for a federal banking license, allowing it to operate under U.S. banking regulations. If the license is fully granted, Ripple will be able to function as a federally regulated financial institution under U.S. banking law.
This approval strengthens Ripple's position in cross-border payments and the infrastructure for digital asset settlement in regulated financial markets. However, this development is unlikely to have an immediate or strong impact on the market price of XRP.
OCC opens the way to federal charter
The Office of the Comptroller of the Currency (OCC) has cleared the way for Ripple to establish the Ripple National Trust Bank.
To obtain full approval, Ripple must still comply with specific OCC rules and operational requirements before the license is finalized.
Even with approval, Ripple will not operate like traditional banks, such as Bank of America or JPMorgan Chase. Trust banks are legally prohibited from accepting public deposits or offering standard loan products, such as consumer credit.
Instead, a Ripple National Trust Bank will primarily focus on custody, settlement, and digital asset management services.
Despite the limitations, this approval signifies an important step in the regulation for the company's long-term strategy. Unlike state licenses for money transactions, which are geographically limited, a federal license offers nationwide coverage.
This approval may influence broader market sentiment but primarily supports the development of infrastructure and adoption by institutions.
CEO Brad Garlinghouse openly responded to the decision and referenced the longstanding criticism from banking sector lobby groups regarding crypto companies.
