Ripple has received conditional approval for a federal banking license, which could potentially allow it to operate under U.S. banking regulations. If the license is granted, Ripple would be able to act as a federally regulated financial institution under U.S. banking law.
The approval strengthens Ripple's position in cross-border payments and infrastructure for the settlement of digital assets in regulated financial markets. However, this does not necessarily or significantly affect the XRP price immediately.
OCC paves the way for federal charter
Office of the Comptroller of the Currency (OCC) has opened an opportunity for Ripple to establish Ripple National Trust Bank.
To obtain full approval, Ripple must still meet specific regulatory and operational requirements from OCC before the license is finally approved.
Even if the license is granted, Ripple will not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks have statutory limitations that prevent them from accepting deposits from the public or offering regular lending products, such as personal loans.
Instead, a Ripple National Trust Bank will primarily focus on services related to custody, settlement, and digital asset management.
Despite the limitations, the approval represents an important regulatory milestone for the company's long-term operational strategy. Unlike state money transmitter licenses, which limit operations geographically, a federal license provides nationwide regulatory coverage.
Such approval may affect overall market sentiment but primarily supports the development of infrastructure and institutional adoption.
CEO Brad Garlinghouse acknowledged the decision publicly and referred to long-standing criticism from lobbyists in the banking sector against cryptocurrency companies.
