Ripple, known for its XRP token, is strengthening its position in the U.S. financial sector by seeking a federal banking license.
What’s Happening
Ripple has applied for a national banking license with the Office of the Comptroller of the Currency (OCC). This will allow its stablecoin RLUSD to shift from state regulation to federal oversight. Launched in May, RLUSD is currently regulated under New York’s DFS. Gaining a federal charter could bring Ripple closer to a model similar to Circle, potentially opening the door for new institutional investors. Ripple’s subsidiary, Standard Custody & Trust, also submitted an application for a Federal Reserve master account on July 1, allowing Ripple to custody RLUSD reserves directly with the Fed.
Market Impact
The market reaction to this news has been muted. As of the time of writing, the price of XRP is $2.23, down 2.28% from the previous day. Trading volume has increased to $3.1 billion. Developer activity around RLUSD has slightly increased since its launch, but there has not been a significant uptick in whale activity. Funding rates on derivatives platforms remain neutral, indicating no major Long or Short dominance in the market.
XRP Price Technical View
Technical analysis shows that XRP has tested the $2.25–$2.35 resistance level. A clean move above $2.35 could open up the next band between $2.65 and $2.78. However, if XRP fails to hold $2.25, it could invalidate the breakout. Conversely, a drop below $2.12 and $2.08 could rapidly shift market sentiment. The RSI is at 59.3, indicating potential upside, while Chaikin Money Flow remains positive.
If Ripple's banking license is approved, RLUSD would become one of the few stablecoins backed directly by a Fed-connected trust, potentially reducing counterparty risks.
