Ripple, a noteworthy player in the cryptocurrency space, has initiated the process of applying for a national banking license in the United States. This move could significantly alter its operations and the perception of cryptocurrencies within the financial sector.
Filing for Banking License
CEO Brad Garlinghouse announced that the company submitted its application to the U.S. Office of the Comptroller of the Currency (OCC). According to Garlinghouse, the goal is to enhance public and institutional trust. Ripple already holds a BitLicense from the New York Department of Financial Services, and a potential federal charter would provide the company with more comprehensive regulatory oversight.
Direct Access to the Federal Reserve
In addition to its OCC application, Ripple is also pursuing a master account with the Federal Reserve through its subsidiary, Standard Custody. If approved, this account would allow Ripple to hold reserves for RLUSD directly with the central bank, providing a substantial advantage in terms of transparency and security for stablecoin holders.
Impact on XRP and RLUSD
Ripple's regulatory push has sparked discussions within the crypto community about its potential impact on the utility and value of XRP. An analyst known as 'XRP Investing' suggested that with federal approval and Fed access, Ripple could be seen as operating on par with traditional banking giants like JPMorgan. This could significantly enhance RLUSD's credibility and increase adoption of XRP for international settlements.
The application for a national banking license and access to a Federal Reserve master account could significantly strengthen Ripple's position in the market and increase trust in XRP as an asset designed for global financial systems.
