Ripple has received a conditional approval for a federal banking license, which may allow the company to operate under U.S. banking regulations. If Ripple obtains the license, the company could become a financial institution that complies with U.S. banking law.
The approval strengthens Ripple's position in cross-border payments and digital infrastructure for assets on regulated financial markets. However, this is unlikely to lead to a significant direct change in the XRP price.
OCC opens the way to federal charter
The Office of the Comptroller of the Currency (OCC) has created an opportunity for Ripple to start Ripple National Trust Bank.
To obtain a full approval, Ripple must still meet certain regulatory and operational requirements that the OCC mandates 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 regular loans to individuals.
Ripple National Trust Bank will instead focus on custody, settlement, and management of digital assets.
Despite these limitations, the approval is an important step for Ripple and the company's long-term plan. Unlike state licenses, which limit where the company can operate, a federal license allows operation throughout the USA.
An approval may affect the market's perception, but it is primarily the infrastructure and institutions' usage that will receive support.
CEO Brad Garlinghouse has publicly commented on the decision, referring to criticism from the banking lobby against cryptocurrency companies.
