Ripple, a well-known cryptocurrency company, has applied for a banking license in the United States and access to the Federal Reserve's Master Account. This move could strengthen XRP's position in traditional finance.
Application for Banking License and Federal Reserve Master Account
Ripple CEO Brad Garlinghouse confirmed the company has filed for a national banking charter in the U.S. This information was first reported by Reuters on July 2. Alongside the banking charter application, Ripple also sought a Federal Reserve Master Account, allowing the firm to hold reserves directly with the central bank. The Office of the Comptroller of the Currency (OCC) confirmed receipt of the company's application.
Strengthening XRP's Position Within Regulated Financial Infrastructure
This step is particularly relevant to XRP, Ripple's digital asset, which plays a key role in the company's cross-border payment strategy. By embedding deeper within traditional financial systems, Ripple could enhance the legitimacy and utility of XRP in regulated environments. In a post on X (formerly Twitter), Garlinghouse noted that gaining access to the Federal Reserve's payments infrastructure through a Master Account would allow RLUSD reserves to be held directly with the Fed.
Potential Impact on Institutional Adoption and Liquidity Use Cases
Ripple’s deeper alignment with regulatory agencies and potential access to core financial systems could drive new adoption pathways for XRP. Financial institutions aiming to meet compliance standards may be more likely to engage with assets supported by transparent frameworks and direct central bank connections. As the company positions RLUSD to become a secure and institution-ready stablecoin, the parallel development of XRP as a settlement asset may provide added flexibility in liquidity management.
Ripple's effort to obtain a U.S. banking license and direct access to the Federal Reserve's payment network may have wider implications than stablecoin operations alone. This move could support XRP's emergence as a trusted digital asset within mainstream financial frameworks.
