Ripple, Circle, Paxos Secure Path To National Banking Charters In The US
Crypto's establishment moment arrives—not with a bang, but with a banking charter.
Three of the industry's most influential players—Ripple, Circle, and Paxos—have reportedly cleared a critical regulatory hurdle. The path to securing national banking charters in the United States is now open, a move that could redefine their operational landscape and legitimize their core businesses in the eyes of traditional finance.
The Regulatory Green Light
This isn't about a new token launch or a partnership deal. This is infrastructure. A national banking charter acts as a master key, unlocking a unified regulatory framework across all 50 states. It bypasses the patchwork of state-by-state money transmitter licenses—a costly and complex maze that has long stifled growth for fintech and crypto firms.
For Ripple, it's a potential end-run around the SEC's securities allegations for XRP, anchoring its cross-border payment business in recognized banking law. For Circle, issuer of the USDC stablecoin, it's the ultimate vote of confidence for its reserve-backed model, potentially easing integration with the core banking system. For Paxos, a powerhouse in tokenized assets and stablecoins, it solidifies its position as a regulated gateway between old and new money.
The Finance World's Cynical Wink
Wall Street's old guard, of course, will see this as crypto finally putting on a suit and tie—playing by their rules on their turf. A cynical take? It's the ultimate co-option. The rebellious technology gets a routing number, and the banks get to keep charging for the plumbing.
But the real story is simpler: pragmatism wins. These companies aren't trying to burn the system down anymore; they're wiring directly into its mainframe. The race isn't to replace banks—it's to become one.
OCC’s Approval Of Digital Asset Trust Banks
Once finalized and full approval is reached, these national trust bank charters would empower the crypto companies to manage and hold assets on behalf of their customers, enabling faster payment settlements.
Currently, Anchorage Digital is the only digital asset company that holds a national trust bank charter from the OCC, which oversees a total of 60 such institutions.
Comptroller Jonathan Gould emphasized that each application underwent a thorough and rigorous review process, underscoring the necessity for each entity to meet additional conditions before gaining full operational status.
He explained that welcoming new entrants into the banking landscape aids in modernizing the system, diversifying offerings, and enhancing access to innovative financial products.
Ripple CEO Challenges Banking Lobbyists
Brad Garlinghouse, CEO of Ripple, commented on the approval via social media, highlighting it as a significant advancement for Ripple’s stablecoin, RLUSD. He stated that it sets a high standard for compliance under both federal and state regulation.
Garlinghouse also took a moment to address banking lobbyists who may have opposed this move, asserting that their “anti-competitive tactics” are evident.
The executive pointed out that while these lobbyists have argued that the crypto industry does not abide by the same regulations, the recent approvals demonstrate that the crypto sector is operating transparently under the supervision of the OCC.
Stuart Alderoty, Ripple’s Chief Legal Officer, noted that the firm is among the first entities to receive conditional approval following the enactment of the GENIUS legislation, ensuring the sustainability of Ripple’s stablecoin business for the long term.
Featured image from DALL-E, chart from TradingView.com
