Ripple Labs has officially applied for a national bank charter in the U.S., which could impact its cryptocurrency XRP.
Application for National Bank Charter
Ripple Labs has made a significant move toward deeper integration into the global financial system by applying for a national bank charter with the U.S. Office of the Comptroller of the Currency (OCC). CEO Brad Garlinghouse emphasized the company's commitment to regulatory compliance. Currently, the company holds a BitLicense from the New York Department of Financial Services, allowing it to operate legally within one of the world's strictest crypto jurisdictions.
XRP Valuation Models
Despite the optimistic narrative, the market's response has been muted. Analysts have proposed several valuation models where XRP could reach between $10 and $22, provided Ripple captures market shares from SWIFT, stablecoins, and tokenized assets. The first model suggests that XRP could reach $10.91 if Ripple captures 10% of SWIFT's annual transaction volume.
Ripple's Strategy in Industry Context
Ripple's pursuit of a bank charter aligns with global conversations surrounding central bank digital currencies and tokenized assets. Analysts from Citi and HSBC have indicated that fully compliant stablecoins could become preferred vehicles for cross-border settlements, potentially reducing dependence on SWIFT and correspondent banking relationships.
Ripple’s application for a national bank charter and access to the Federal Reserve illustrates the ambitions of a crypto company to become embedded within the U.S. banking system. While XRP's market valuation has yet to reflect this potential, institutional-grade infrastructure and regulatory clarity may soon transform Ripple's role in the global financial ecosystem.
