Ripple Makes Bold Move: Joins US Crypto Banking License Race in 2025

Another day, another crypto firm tries to play nice with regulators—but this time it's Ripple placing its billion-dollar bet on banking legitimacy.

Breaking the chains of crypto's Wild West era

XRP's parent company just filed paperwork to join the exclusive club of US-chartered crypto banks. Because nothing says 'we're serious about compliance' like begging permission from the same institutions you spent years disrupting.

Wall Street's worst nightmare or its next golden child?

The move could give Ripple direct access to Federal Reserve payment systems—a holy grail for any fintech firm. Meanwhile, traditional bankers are sweating through their bespoke suits wondering if they'll need to start understanding blockchain after all.

One thing's certain: in 2025's regulatory chess game, Ripple just moved its queen.

National Bank Charter And Fed Master Account

According to Reuters, securing a national bank charter would allow Ripple and other crypto firms to streamline their payment processes, reducing costs by eliminating the need for intermediary banks. 

Moreover, such a designation WOULD provide a crucial endorsement of legitimacy after years of operating in a regulatory gray area. The Office of the Comptroller of the Currency (OCC), a key banking regulator, has confirmed receipt of Ripple’s charter application, which will undergo rigorous scrutiny before any approval is granted.

In addition to the charter, Ripple is also seeking access to a Federal Reserve (Fed) Master account. This would enable the company to tap into the Federal Reserve’s payments infrastructure, allowing it to manage its stablecoin reserves directly with the central bank. 

Ripple launched its stablecoin, RLUSD, in October of last year. Although it is considerably smaller than dominant players like Tether (USDT) and Circle (USDC), RLUSD has established itself as one of the largest stablecoins, boasting a market value of approximately $470 million.

Ripple Nears Resolution In SEC Legal Battle

This strategic move occurs at a pivotal time for Ripple, as the company appears to be approaching a resolution in its prolonged legal battle with the US Securities and Exchange Commission (SEC). 

As reported by Bitcoinist, Garlinghouse indicated that both Ripple and the SEC are likely to withdraw their respective appeals, hinting at a potential end to a dispute that has spanned several years. 

Interestingly, this shift could allow the blockchain payment company to refocus on its Core mission: building the “Internet of Value,” as disclosed by Garlinghouse, a vision aimed at transforming global payment systems.

The outcome of Ripple’s legal battle could also pave the way for additional financial products linked to its associated cryptocurrency, XRP. With major asset managers expressing interest in exchange-traded funds (ETFs) that include XRP, the stakes are high for Ripple’s future in the financial landscape.

Notably, Circle has also announced its intention to establish a national trust bank in the US earlier this week, following its successful initial public offering (IPO). 

Circle’s CEO, Jeremy Allaire, emphasized the company’s commitment to trust and compliance, stating that becoming a publicly traded company is a critical step in this journey.

As of this writing, XRP trades at $2.23, jumping little over 3% following Ripple’s announcement on Wednesday. This recovery puts the cryptocurrency 34% below its record high of $3,40. 

Featured image from DALL-E, chart from TradingView.com