Market News

US Crypto Leader Ripple Seeks Banking License Amid Regulatory Changes

Ripple, the blockchain payment company known for its innovative cryptocurrency solutions, has officially applied for a national bank charter in the United States.

This strategic move, announced by CEO Brad Garlinghouse, is designed to enhance Ripple's compliance and transparency in a rapidly evolving regulatory landscape.

Securing a national bank charter would allow Ripple to process payments more efficiently by bypassing intermediary banks, which can lower operational costs.

Furthermore, this license could legitimize Ripple’s financial products, particularly its stablecoin, RLUSD, which currently holds a market cap of around $470 million.

In addition, Ripple is pursuing access to a Federal Reserve Master account, which would enable it to directly access the central bank’s infrastructure for digital payments.

This application comes as Ripple nears a resolution in its long-standing legal battle with the SEC over the status of its cryptocurrency, XRP.

The outcome of this legal conflict is crucial, as it could pave the way for Ripple to expand its offerings and further establish itself in the market.

As Ripple positions itself within traditional banking frameworks, it joins other crypto firms like Circle, which are also seeking national banking charters to enhance their operational legitimacy.

The potential approval of Ripple’s banking license could significantly reshape the stablecoin and broader crypto landscape, influencing regulatory practices and investment strategies.

Currently, XRP's market performance reflects positive sentiment, trading at approximately $2.23, marking a notable recovery following these announcements.