Ripple has obtained provisional approval for a federal banking license, which could allow it to function within the framework of US banking regulations. If this license is fully granted, Ripple would be able to operate as a federally regulated financial entity according to US banking laws.
This development enhances Ripple’s standing in the realm of international payments and digital asset settlement systems within regulated financial markets. However, it is important to note that this news may not lead to an immediate or significant change in the market price of XRP.
OCC Creates Pathway for Federal Charter
The Office of the Comptroller of the Currency (OCC) has initiated a process that could enable Ripple to establish Ripple National Trust Bank.
For full authorization, Ripple still needs to fulfill certain regulatory and operational criteria set by the OCC before finalizing its licensing.
This is monumental! @Ripple has just received conditional approval from @USOCC for chartering Ripple National Trust Bank. This marks a significant advancement – particularly for $RLUSD, establishing top-tier standards for stablecoin compliance under both federal (OCC) & state (NYDFS) supervision.
To all…
— Brad Garlinghouse (@bgarlinghouse) December 12, 2025
If approved, it’s crucial to understand that Ripple would not function like conventional banks such as Bank of America or JPMorgan Chase. Trust banks are legally prohibited from taking public deposits or providing traditional lending services like consumer loans.
A potential Ripple National Trust Bank would primarily concentrate on custody services, settlement processes, and managing digital assets.
Despite these restrictions, this approval signifies an important regulatory achievement aligned with the company’s long-term operational vision. Unlike state money transmitter licenses that confine operations regionally, a federal charter offers comprehensive nationwide regulatory coverage.
This kind of endorsement might sway overall market sentiment but mainly bolsters infrastructure development and institutional acceptance within the sector.
CEO Brad Garlinghouse publicly acknowledged this decision while referencing ongoing critiques from banking industry lobbyists directed at cryptocurrency companies.
The article titled “Is Ripple Becoming a Bank Good or Bad for XRP?” originally appeared on BeInCrypto.