Ripple, a prominent company in the cryptocurrency industry, has applied for a license to create a limited-purpose national trust bank. This initiative aims to establish a regulated infrastructure for tokenized financial products.
Purpose of Ripple's Application
According to the application, Ripple intends to use the new structure to hold Ripple USD (RLUSD) reserves and create a regulated infrastructure for tokenized financial products. There is also a mention of a potential direct access to the Federal Reserve in the future. Analyst WrathofKahneman stated that this initiative is not targeting individual users but is focused on B2B services.
Lack of XRP Specifications
Another notable detail is that the application does not mention XRP directly. Analysts point out that Ripple is trying to clearly separate XRP from its banking license to avoid regulatory confusion. However, there are no indications that future XRP integrations are entirely ruled out.
Structure and Confidentiality of the Application
The application states that Ripple Labs would own the bank and issue special shares to its executives. Much of the application details were kept confidential, which has been interpreted as a sign of a potential initial public offering (IPO) plan. Therefore, Ripple is aiming to acquire a national bank license to create a regulated subsidiary to manage its tokenization infrastructure.
Ripple's application to establish a national trust bank represents a significant step in forming a regulated infrastructure for tokenized financial products. The absence of XRP mentions and the confidentiality of application details highlight the company's cautious approach to interacting with regulators.
