Ripple has received conditional approval for a federal banking license, which could enable its operations under U.S. banking regulations. If the license is granted, Ripple could operate as a federally regulated financial institution under U.S. banking laws.
The approval reinforces Ripple's position in cross-border payments and the settlement infrastructure for digital assets in regulated financial markets. However, the development may not immediately or significantly impact XRP's market price.
OCC is opening a federal license pathway
The Office of the Comptroller of the Currency (OCC) has opened the opportunity for Ripple to establish Ripple National Trust Bank.
For full approval to be granted, Ripple must still meet the OCC's specific regulatory and operational requirements before the license is finalized.
Even if approval is obtained, Ripple would not operate like traditional banks, such as Bank of America or JPMorgan Chase. Trust banks are subject to a statutory restriction on accepting public deposits or offering traditional loan products, such as consumer credit.
Ripple National Trust Bank would primarily focus on custody, settlement, and digital asset management services.
Although there are restrictions, approval is a significant regulatory milestone for the company's long-term operational strategy. Unlike state-issued money transfer licenses that limit operations geographically, a federal license allows for nationwide regulation.
Approval may affect broader market sentiment, but primarily it supports the development of infrastructure and institutional adoption.
CEO Brad Garlinghouse publicly addressed the decision and referred to the long-standing criticism from banking industry lobbyists against crypto companies.
