Ripple, a prominent cryptocurrency firm, has applied for a national banking charter in the US, which could significantly alter its operations in the financial market.
What We Know About Ripple's Application
Following in the footsteps of Circle, Ripple has submitted an application for a national banking charter in the US. The application must be approved by the Office of the Comptroller of the Currency (OCC). This will enable Ripple to save time and costs on payment processing by bypassing intermediary banks, while enhancing the company's legitimacy amid regulatory uncertainty.
Ripple's Goals with the License
Ripple aims to establish the 'Ripple National Trust Bank', which will operate as a national trust bank regulated by the OCC. The bank will focus on B2B sectors and conduct fiduciary services related to managing Ripple's stablecoin reserves (RLUSD).
Structure of Ripple's New Bank
The new Ripple Trust Bank will be headquartered in New York and will be a wholly owned subsidiary of Ripple Labs. Its board will consist of five members, including Ripple's Chief Legal Officer Stuart Alderoty. The application does not mention XRP, but there is speculation that future integrations of the cryptocurrency could be possible.
Ripple's application for a banking charter could change the game in the cryptocurrency industry, providing the company with opportunities for more direct interaction with the traditional banking system and legitimizing its operations.
