Here’s What Ripple Banking License Could Mean for XRP

Ripple is now attempting to boost its presence with the acquisition of a banking license, and some believe this could be beneficial to XRP. For context, Ripple CEO Brad Garlinghouse recently announced that the company has filed for a national bank charter with the U.S. Office of the Comptroller of the Currency (OCC).  Ripple Eyes Banking License and Fed Master Account According to him, if an approval comes, Ripple will operate under both federal and New York State oversight, something few crypto firms can claim. Garlinghouse noted that this move will raise the bar for trust and transparency in the stablecoin space, as Ripple prepares to expand the role of its stablecoin, RLUSD. At the same time, Ripple's subsidiary, Standard Custody, also applied for a Federal Reserve master account. Notably, this access would allow Ripple to hold RLUSD reserves directly with the Fed, cutting out third parties.  Garlinghouse described this step as a way to protect the long-term credibility of RLUSD and strengthen Ripple's push for trusted, secure, and regulation-first crypto infrastructure.  Possible Benefits to RLUSD Expectedly, the announcement triggered widespread excitement within the XRP community. Commenting on the development, market analyst "XRP Investing" explained why the move matters far beyond just Ripple's internal operations. https://twitter.com/XRP_investing/status/1940516417012699584 According to the analyst, the national bank charter would put Ripple on equal footing with major banks like JPMorgan. This status would legitimize RLUSD and put XRP under a much brighter spotlight. He believes that once Ripple earns that recognition, traditional financial institutions will start viewing XRP as a serious and credible asset. XRP Investing also mentioned the importance of Ripple's application for a Fed master account. In their view, if Ripple gains such access, it can store RLUSD reserves directly at the central bank, something that eliminates counterparty risk and brings full transparency.  The analyst sees this as an important move. Specifically, if this occurs, institutions looking for a stablecoin backed by strong regulatory backing would naturally opt for RLUSD. Speaking further, the analyst stressed that with both OCC and NYDFS oversight, RLUSD could become the stablecoin built for large institutions. It would be backed by U.S. Treasuries and could even qualify for FDIC insurance.  Compared to other major assets like USDT and USDC, RLUSD would boast clearer regulation and stronger protections. XRP Investing said that this edge could push RLUSD to the top of the stablecoin market. XRP Could Ride on the Wave He also noted that Ripple's improved regulatory standing could make XRP more attractive to banks and financial firms, especially for cross-border payments. Notably, Ripple already uses XRP for its Payments product, but adding full banking status and direct Fed access would make the offering more appealing.  Further, XRP Investing tied the future price of XRP to its rising use. As more institutions adopt it for real-world use cases, trading volumes and demand would naturally increase. The analyst pointed out that XRP already saw a 3–5% jump right after the banking news, but he believes that's just the start. If Ripple secures approval, XRP could gain serious momentum. He also explained that Ripple wouldn't need to rely on old banking systems like correspondent banks anymore. This would put Ripple in direct competition with the traditional financial system and give XRP a chance to replace outdated infrastructure.  To him, Ripple could become the first blockchain-based company to operate as a full-service bank. They could handle custody, stablecoin management, and instant settlement, all through the XRP Ledger.  The analyst added that RLUSD currently holds a market cap of about $470 million, compared to $62 billion for USDC and $158 billion for USDT. However, with clearer regulation and Fed-level access, RLUSD could close that gap quickly, and XRP would ride that wave.