Ripple is making significant strides towards integrating into the U.S. financial system by applying for key licenses.
Application for Banking License
Ripple has applied for a national banking license in the United States. This move follows a similar step by Circle, a stablecoin issuer.
Importance of Fed Master Account
However, a more significant development is Ripple's application for a Fed master account through Standard Custody, the crypto custody company it acquired last year. Experts, including Fox Business reporter Eleanor Terrett, argue that obtaining a master account is far more important than a banking license, as it provides direct access to the Fed's payment system.
Expectations on Custodia Bank Case
Historically, the Fed has refused to grant crypto companies access to the payment system. Currently, it is defending its position in a lawsuit regarding depository institutions’ access to primary accounts (Custodia Bank – FED), with a decision expected soon. If Ripple’s application for a master account is approved, it will gain access to the Federal Reserve’s payment infrastructure and will be able to hold its RLUSD stablecoin reserves directly at the central bank.
Support from the Federal Reserve could represent a crucial step for Ripple and other crypto companies in gaining access to essential financial tools.
