42 Banking Giants—Including Morgan Stanley & BofA—Move to Block Ripple’s Charter Ambitions
Ripple’s push for a bank charter just hit a wall of institutional resistance—and it’s a who’s who of legacy finance.
The blockade brigade
Forty-two major banks—including household names like Morgan Stanley and Bank of America—are reportedly banding together to oppose Ripple’s regulatory ambitions. The move reeks of defensive posturing from institutions that still treat crypto like a hostile takeover rather than an inevitable evolution.
Why the cold feet?
Traditional banks appear spooked by the prospect of a crypto-native player gaining equal footing in their sandbox. Never mind that half these institutions are quietly building their own blockchain solutions—hypocrisy thrives in finance.
The ripple effect
This coordinated pushback could force Ripple to pivot toward deeper partnerships rather than direct competition. Or it might just expose how threatened old-money gatekeepers feel by decentralized alternatives. Either way—grab the popcorn.
Ripple is facing strong resistance in its effort to become a federally licensed bank in the U.S.
On July 5th, the company applied to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank, a move that could mark a major step in integrating crypto with the traditional financial system.
This application would allow Ripple to offer services like stablecoin issuance through RLUSD, digital asset custody, and even direct access to the U.S. payment system via a Federal Reserve master account.
Why Are the Banking Giants Pushing Back?
Ripple’s plans have sparked strong resistance from some of the biggest names in banking.
The Bank Policy Institute (BPI), which represents 42 major U.S. banks, has voiced opposition. Members include JPMorgan, Citigroup, Bank of America, Goldman Sachs, Morgan Stanley, BNY Mellon, and others.
UPDATE: RIPPLE HAS BANKS ON THE ROPES
BPI has just attempted to block @Ripple's Banking license. $XRP $RLUSD Let's remember who BPI represents: an industry lobbying group.
BPI represents 42 of the largest U.S. banks and acts as their policy advocate and lobbying… pic.twitter.com/OOXDy84xe0
The major concerns it cited were unclear crypto regulations and the limited time given for public input. It argues that the public was given just 2.5 weeks to review the application, as inadequate for assessing the proposal
This clash highlights the growing divide as traditional institutions are concerned about blockchain startups entering their regulated space. Ripple positions itself as a LINK between crypto and traditional finance, using its XRP token to handle cross-border payments for 300+ partners.
Transparency and Risk in the Spotlight
This is not the first time banking groups have raised red flags.
Previously, banking groups, including the American Banking Association, had urged the OCC to delay its decision on granting national bank charters to crypto firms like Ripple, Circle, and Fidelity Assets. In a joint letter, the groups argue that the applications from the crypto companies lacked transparency and did not clearly show how these firms meet trust bank standards.
They also cited concerns over limited public review, which they say could undermine trust and introduce risks to the financial system.
Momentum Builds for Crypto Banking Charters
However, interest in crypto banking charters is growing. With new legislation like the GENIUS Act laying out clearer rules for stablecoins, more crypto firms are expected to apply. Experts say that these federal charters could help crypto companies operate nationwide without needing separate state licenses.
Besides, the recent WHITE House report is also pushing for clear rules to help digital asset firms obtain bank charters, access Fed master accounts, and offer services like custody, tokenization, and stablecoin issuance without being held back by vague or outdated regulations.
