For years, the phrase "XRP US banking license" felt like some kind of mythical creature in the crypto world. People talked about it on X (formerly Twitter) like it was the Holy Grail. Some thought it would never happen. Others bet their entire portfolios on the idea that Ripple would eventually force its way into the mahogany-rowed halls of American finance.
Well, it actually happened. Sort of.
In late 2025, the Office of the Comptroller of the Currency (OCC) dropped a bombshell. They granted conditional approval for Ripple to establish the Ripple National Trust Bank (RNTB). Honestly, it changed the conversation overnight. It wasn't just a PR stunt. It was a massive, federally supervised pivot that basically told the world Ripple is done playing defense in courtrooms and is ready to start acting like the financial infrastructure it always claimed to be.
The Reality of the XRP US Banking License
Most people get this part wrong. They hear "banking license" and think Ripple is about to open branches on every corner or start handing out mortgages. Nope. That’s not what’s happening here.
The license Ripple secured is a National Trust Bank charter.
Think of it as a specialized type of bank. It doesn’t take your cash deposits or let you swipe a debit card at the grocery store. Instead, it focuses on the "heavy lifting" of the financial plumbing—custody, asset management, and the safekeeping of reserves. This is huge for XRP because it provides a regulated bridge. When a massive institutional player wants to touch digital assets, they don't want to deal with a "crypto startup." They want to deal with a bank.
Why the GENIUS Act Changed Everything
You've gotta look at the timing. This didn't happen in a vacuum. President Trump signed the GENIUS Act in July 2025. It basically laid out the "rules of the road" for stablecoins and digital assets in the US. Before this, everyone was just guessing. The SEC was suing everyone, the CFTC was claiming territory, and it was a total mess.
The GENIUS Act gave the OCC the green light to bring crypto firms into the fold. Ripple wasn't the only one, either. Circle (the USDC guys) and Paxos also got their foot in the door.
But Ripple’s move felt different. Why? Because they’ve been the "bad boys" of the industry for so long—at least according to the SEC. Seeing them get a nod from the OCC felt like a redemption arc.
What This Actually Does for XRP
If you’re holding XRP, you’re probably wondering: "Does this make the price go up?"
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Kinda. But it’s a long game.
The primary job of the Ripple National Trust Bank is to manage the reserves for RLUSD, Ripple’s US dollar-backed stablecoin. This is where it gets technical. Because Ripple now has this federal charter, RLUSD is subject to a dual layer of oversight:
- The NYDFS (New York Department of Financial Services) at the state level.
- The OCC at the federal level.
This setup is basically the "Gold Standard." No other stablecoin issuer can really claim that level of transparency right now. When a bank like HSBC or BBVA (both of whom have partnered with Ripple) looks for a stablecoin to use for settlements, they’re going to pick the one that doesn't have a "regulatory cloud" hanging over it.
The more RLUSD gets used in Ripple’s payout network—which already covers about 90% of the global FX market—the more liquidity flows through the XRP Ledger. It’s an ecosystem play. XRP remains the bridge asset for those fast, cross-border moves, while the banking license provides the legal "armor" to make it happen in the US.
The Fight With "Anti-Innovation" Lobbyists
Brad Garlinghouse hasn't been shy about this. After the OCC approval, he took some pretty sharp swings at banking lobbyists. You’ve probably seen the headlines.
He basically called them out for trying to protect their monopolies. For a long time, the argument against Ripple was that it didn't "play by the rules." Now that Ripple is literally becoming a regulated bank, the goalposts have moved. Lobbyists are now worried about "deposit flight"—the idea that people will move their money out of traditional banks and into these high-yield, crypto-backed trust accounts.
Honestly, the tension is palpable. The big banks are scared. They’ve had a monopoly on moving money for centuries, and now a tech company from San Francisco has a federal charter and a ledger that settles in seconds, not days.
The Fed Master Account: The Final Frontier
There is one more hurdle. Ripple has been pushing for a Federal Reserve Master Account.
This is the big one. If you have a Master Account, you can settle directly with the Fed. You don't need a "correspondent bank" to act as a middleman. Right now, even with the OCC license, most crypto firms still have to route through traditional banks.
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Garlinghouse’s stance is simple: If we meet the same standards as a bank, we should have the same access to the infrastructure. As of early 2026, the Fed is still being pretty cautious. They haven't handed out many of these accounts to digital asset firms yet. But with the OCC approval in hand, Ripple’s case is stronger than ever.
Breaking Down the "Standard Custody" Piece
To get here, Ripple had to make some moves. Back in 2024, they acquired Standard Custody & Trust Company.
This was a genius play. Standard Custody already held a New York Limited Purpose Trust Charter. By buying them, Ripple didn't just get tech; they got the "regulatory DNA" and the licenses needed to satisfy the NYDFS.
Interestingly, the guys who built Standard Custody—Arthur Britto and David Schwartz—were the same ones who co-created the XRP Ledger. It was a homecoming of sorts. It allowed Ripple to start offering institutional-grade custody almost immediately, rather than waiting years to build it from scratch and get approved.
Real-World Impact: The LMAX Partnership
We’re already seeing the fruits of this labor. Just recently, Ripple announced a massive $150 million financing deal with LMAX Group.
They’re integrating RLUSD as a core collateral asset for institutional trading. We’re talking about top-tier banks and brokers using Ripple’s regulated stablecoin to margin their trades. This is exactly what the banking license was meant to enable. It turns "crypto" into "infrastructure."
Actionable Insights for the Future
If you're following the XRP US banking license story, don't just watch the price charts. Watch the regulatory filings. Here is what actually matters moving forward:
- Track the "Conditional" Status: The OCC approval is "conditional." Ripple still has to hit specific milestones regarding capital, liquidity, and compliance before the charter is fully effective. Watch for the "final" stamp of approval.
- Monitor RLUSD Adoption: The stablecoin is the vehicle. If RLUSD hits $5B or $10B in market cap, it proves the banking license is working.
- The Master Account Decision: If Ripple (or Circle) secures a Fed Master Account, it is game over for the old way of doing things. That is the ultimate signal of legitimacy.
- ETF Inflows: Now that there’s a clearer regulatory path, US spot XRP ETFs have already crossed $1 billion in assets. Institutional money follows clarity.
The era of Ripple being "just a crypto company" is over. They are building a regulated financial empire, brick by brick. Whether the big banks like it or not, the "XRP US banking license" is no longer a myth—it's the new reality of the American financial system.
Next Steps: You should look into the specific capital requirements the OCC has set for Ripple’s Trust Bank to see how much "skin in the game" they are required to have. Keep an eye on the monthly transparency reports for RLUSD reserves, as these will be the first documents subject to this new dual-oversight regime.