Ripple’s Bank Approval Leaves XRP On The Sidelines?

Love puts XRP near $1.29 on the reported October 26 approval date and around $1.32 two days later. Over the preceding 30 days, the token had fallen 14.74%, despite a flurry of Ripple announcements around its Swell conference.

The distinction starts with what the bank would actually do. Citing an Office of the Comptroller of the Currency approval letter, Love says Ripple National Trust Bank would provide institutional cryptocurrency custody and manage reserves backing RLUSD, Ripple’s dollar stablecoin.

It would not issue RLUSD itself, accept conventional deposits or make loans. Love describes it as “a vault with a federal badge on the door”—regulated infrastructure, rather than a mechanism that automatically creates token demand.

He also argues that much of the approval was already anticipated. According to the YouTube video research, the OCC conditionally approved Ripple’s application on December 12, 2025, alongside four others; final authorization marked completion of the remaining requirements.

A more direct development for XRP holders, Love says, was BNY’s expanded custody support. He cites a Ripple announcement naming both XRP and RLUSD on BNY’s digital-asset custody platform, potentially removing an operational hurdle for institutions considering the token.

The video cites approximately $1.81 billion in cumulative net inflows into spot XRP ETFs, but just $4.3 million during October 19–23. The reported charter-day withdrawal was followed by a session with no net flows.

Love also questions headlines describing large-wallet concentration as investor accumulation. Two wallets he examined, labeled Ripple 10 and Ripple 11, each received 500 million XRP from escrow. Those balances, he argues, should not be confused with fresh purchases by independent investors.

His outlook remains explicitly speculative: he assigns an 85% probability that an outside institution publicly names Ripple’s bank as its RLUSD custodian by June 30, 2027, versus 20% for XRP custody.

For investors, the distinction is practical: Ripple can expand its regulated business without producing equivalent buying pressure for XRP. Named custody clients and sustained fund inflows would offer stronger evidence of token demand than the charter alone.

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