Crypto’s Banking Gold Rush: Everyone’s Applying—Except Ripple?

Crypto firms are scrambling for banking licenses like it’s a Black Friday sale—but where’s Ripple? John Deaton calls it out: ’Surprised they’re not in the mix.’ Meanwhile, traditional finance scoffs from the sidelines, muttering about ’due diligence’ while counting their fees. The race is on—who’s actually building bridges, and who’s just printing monopoly money?

Crypto firms push for banking licenses

According to insiders cited by the Wall Street Journal, firms like Circle, BitGo, Coinbase, and Paxos are exploring banking charters in a bid to operate under more structured legal frameworks.

This move comes as U.S. regulators, spurred by a history of industry setbacks, push to define clear rules for stablecoins.

Even Federal Reserve Chair Jerome Powell recently acknowledged the growing appeal of digital assets, noting that building a stablecoin framework is not just timely, but essential.

Why is Ripple not in the list?

Amid the buzz surrounding crypto firms exploring banking charters, attorney and Ripple [XRP] advocate John Deaton voiced his surprise at Ripple’s absence from the list.

Given Ripple’s ongoing push to revolutionize cross-border finance and its deep integration with traditional financial systems, Deaton expected the company to be among those seeking formal banking status.

However, seeing this not happen, Deato took to X and stated, 

“Surprised not to see @Ripple on this list. It was a matter of time.”

For context, the pursuit of a bank charter would allow crypto firms to function more like traditional financial institutions, offering a broader range of services under regulatory oversight.

Other developments concerning Ripple

Deaton’s reaction to Ripple’s absence from this movement likely stems from the company’s persistent efforts to cement its role in global finance, particularly through its robust payment infrastructure.

Notably, Ripple’s recent $1.25 billion acquisition of prime brokerage firm Hidden Road underscores its ambition to deepen its service offerings and solidify its presence across institutional markets, making its lack of interest in a banking license all the more unexpected.

Now, while Ripple has yet to pursue a bank license, such a move may still be on the table, particularly once its legal standoff with the U.S. SEC reaches a formal resolution.

In fact, the recent court decision to grant a joint motion to pause the XRP case suggests a settlement is imminent.

XRP’s price action

Meanwhile, XRP was trading at $2.09 at press time, following a minor dip of 1.10%, reflecting broader market fluctuations.

Still, overall sentiment remains positive, with the global crypto market cap climbing to $2.76 trillion, up 0.58% in the past 24 hours, hinting at renewed investor confidence across the digital asset space.