Is Ripple Turning Into a Bank a Win or a Risk for XRP?
Ripple has moved a step closer to becoming a federally regulated financial entity after receiving conditional approval tied to a U.S. banking license. If the process is completed, Ripple would operate under U.S. federal banking rules, placing it inside the traditional financial system rather than on the edge of it.
This development strengthens Ripple’s role in cross-border payments and digital asset settlement within regulated markets. However, expectations of an immediate price surge for $XRP may be unrealistic, as the approval is more about infrastructure and compliance than short-term speculation.
OCC Clears a Regulatory Route
The Office of the Comptroller of the Currency has opened a formal path for Ripple to establish a “Ripple National Trust Bank.” Before full authorization is granted, Ripple must still satisfy strict operational and compliance requirements set by the OCC.
Even with approval, this entity would not function like major commercial banks such as JPMorgan or Bank of America. Trust banks are restricted by law. They cannot take public deposits or issue standard loans. Instead, their role centers on custody, settlement, and digital asset-related services.
While limited in scope, this move marks a significant regulatory milestone. A federal charter provides nationwide coverage, unlike state-level licenses that restrict operations region by region. Over time, this could support institutional confidence and broader adoption, even if it does not immediately reflect in XRP’s price.
Ripple CEO Brad Garlinghouse publicly commented on the decision, pointing out that parts of the traditional banking lobby have long resisted crypto firms entering regulated financial territory.
