Is Ripple Becoming a Bank Good or Bad for XRP?

Ripple has received conditional approval for a federal banking license, which could potentially enable its operation under US banking regulations. If granted, the license would allow Ripple to operate as a federally regulated financial institution under US banking law.

The approval strengthens Ripple’s position in cross-border payments and digital asset settlement infrastructure across regulated financial markets. However, the development may not result in an immediate or substantial impact on XRP’s market price.

OCC Opens Federal Charter Path

The Office of the Comptroller of the Currency (OCC) has opened a pathway for Ripple to charter Ripple National Trust Bank.

To receive full approval, Ripple must still meet specific OCC regulatory and operational requirements before licensing is finalized.

HUGE news! @Ripple just received conditional approval from the @USOCC to charter Ripple National Trust Bank. This is a massive step forward – first for $RLUSD, setting the highest standard for stablecoin compliance with both federal (OCC) & state (NYDFS) oversight.To the…

— Brad Garlinghouse (@bgarlinghouse) December 12, 2025

Even if approved, Ripple would not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks are legally restricted from accepting public deposits or offering conventional lending products, such as consumer loans.

Instead, a Ripple National Trust Bank would focus primarily on custody, settlement, and digital asset management services. That distinction matters.

A national trust bank:

• Can provide custody, fiduciary, and settlement services
• Can hold assets on behalf of clients
• Is federally supervised by the OCC
• Cannot take retail deposits or issue loans
• Does not get FDIC insurance

So Ripple is becoming a regulated financial infrastructure provider.

Despite limitations, the approval represents a meaningful regulatory milestone for the company’s long-term operational strategy. Unlike state money transmitter licenses, which limit operations geographically, a federal charter enables nationwide regulatory coverage.

Such approval may influence broader market sentiment, but its primary significance lies in infrastructure development and long-term institutional adoption, rather than short-term speculative demand for XRP.

CEO Brad Garlinghouse acknowledged the decision publicly, framing it as a response to long-standing resistance from traditional banking industry lobbyists toward crypto-native firms entering federally regulated financial markets.