Ripple has received conditional approval for a federal banking license, which could allow the company to operate under U.S. banking regulations. If officially licensed, Ripple would be able to operate as a financial institution under the direct regulation of U.S. federal banking law.
This move helps Ripple solidify its position in cross-border payments and digital asset payment infrastructure in tightly regulated financial markets. However, this event is unlikely to have an immediate or significant impact on the price of XRP in the market.
OCC paves the way for federal licensing.
The Office of the Comptroller of the Currency (OCC) opened the door for Ripple to establish Ripple National Trust Bank.
To receive full approval, Ripple still needs to meet specific regulatory and operational requirements of the OCC before the license is officially granted.
If approved, Ripple would also not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks are legally prohibited from accepting deposits from the public or offering traditional lending products, such as consumer loans.
Instead, Ripple National Trust Bank will primarily focus on custody, payment, and digital asset management services.
Despite some limitations, receiving this approval marks a significant legal step in the company's long-term operational strategy. Unlike state-level Money Transfer License, which only allow operations in limited geographic areas, the federal license enables Ripple to expand its operations nationwide in the United States.
This approval may impact overall market sentiment, but its primary aim is to support infrastructure development and expand the participation of large organizations in this sector.
CEO Brad Garlinghouse also commented on the decision, reiterating long-standing criticism from banking industry advocacy groups against cryptocurrency companies.
