Market News

Regulator Guidance Boosts Ripple’s Banking Aspirations and XRP Potential

Ripple’s pursuit of a national banking license comes at a pivotal moment, as U.S. banking regulators have released crucial guidance on crypto custody that may impact the firm.

This new guidance from the Federal Reserve, OCC, and FDIC states that existing laws on risk management extend to crypto custody, a development that Ripple needs to consider seriously.

If Ripple succeeds in obtaining its banking license, it will be regulated by the OCC, which would enable it to hold clients’ crypto assets as part of its operations.

Historically, the crypto industry faced significant hurdles due to initiatives like Operation Chokepoint, which saw many crypto firms debanked.

However, this latest regulatory insight signifies a fresh opportunity for firms like Ripple to custody assets directly under banking regulations.

The OCC's decision on Ripple's banking application is anticipated within 120 days, potentially aligning with a regulatory environment that may favor crypto under the current administration.

This shift also legitimizes Ripple's recent move to custody its RLUSD reserves with BNY Mellon, strengthening its foothold in the financial ecosystem.

Crypto commentator Pumpius has emphasized the implications of this guidance for XRP, suggesting that U.S. banks might soon specialize in retail and institutional custody for the altcoin.

With the XRP Ledger being touted as "battle-tested," the groundwork appears set for XRP to redefine the banking landscape.

As of now, XRP is trading at approximately $3.08, reflecting a notable increase of over 5% in the past 24 hours.