Ripple Labs, one of the most recognized companies in the crypto space, has taken a significant step by applying for a national banking license in the US. This could influence the cryptocurrency market and stabilize public perception.
Ripple's Steps Towards a Banking License
CEO Brad Garlinghouse confirmed that the company has applied for a national trust bank charter from the Office of the Comptroller of the Currency (OCC). If approved, it would place Ripple under federal oversight, similar to traditional banks.
Additionally, Ripple's stablecoin RLUSD is already regulated, and if the national license is granted, Ripple could hold RLUSD reserves directly with the Federal Reserve, enhancing security for users.
Significance of National Trust Bank License for Ripple
National trust banks cannot take deposits or issue loans but can provide custody services and operate with a single federal license across all states. This simplifies Ripple's expansion plans across the US.
Moreover, obtaining the OCC license means Ripple would adhere to strict anti-money laundering and consumer protection regulations, potentially increasing consumer trust in their stablecoins.
Impact of License on XRP Price and Stablecoin Market
Analysts suggest that gaining the license might lead to a significant increase in XRP's price, currently at $2.25. Should Ripple succeed, along with its anticipated IPO and a clear regulatory framework, XRP's price could soar to $40.
Furthermore, Ripple's move may influence other crypto companies to seek similar licenses, leading to a competitive race in the stablecoin market.
By applying for a banking license, Ripple takes a strategic step towards transforming the perception of digital currencies. If successful, it could solidify the link between fiat and cryptocurrencies and shape the future of money usage.
