XRP Gains Momentum as Ripple Pursues U.S. Banking License

XRP could be on the brink of a major transformation as Ripple seeks to enhance its legitimacy and financial reach with a U.S. national banking license. This pivotal move could significantly elevate Ripple’s status and benefit its native digital asset, XRP.

Ripple’s CEO, Brad Garlinghouse, recently revealed that the company has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) for a national bank charter. If approved, Ripple would operate as a federally regulated entity, also falling under New York State’s financial supervision. His announcement highlights a growing push for greater transparency and trust within the crypto space—particularly in the stablecoin market, with Ripple’s RLUSD stablecoin at the forefront.

In a complementary move, Ripple’s subsidiary, Standard Custody, has also applied for direct access to a Federal Reserve master account. Gaining this access would allow Ripple to deposit RLUSD reserves directly with the U.S. central bank, removing intermediaries and reducing exposure to third-party risks.

Garlinghouse emphasized that combining regulatory oversight with direct Fed access reinforces RLUSD’s credibility. By doing so, Ripple aims to provide a secure, regulation-first digital infrastructure—a rarity in the largely unregulated crypto industry.

This strategic direction ignited optimism among the XRP community. A notable market analyst, known online as “XRP Investing,” broke down the implications of this move, arguing that Ripple’s transformation into a full-fledged banking entity could dramatically reshape how the traditional financial world views XRP. They believe the national bank charter would enable Ripple to stand alongside giants like JPMorgan, offering legitimacy that could have a trickle-down effect on XRP’s perception in financial markets.

Moreover, the Fed master account, if secured, would position Ripple to manage RLUSD reserves at the national level—enhancing both transparency and security. “XRP Investing” sees this as a magnet for institutional investors who prioritize regulatory clarity and risk reduction.

Given these factors and the involvement of both the OCC and the New York Department of Financial Services (NYDFS), the analyst views RLUSD as uniquely suited for institutional adoption. Unlike USDT and USDC, which operate with varying levels of transparency and regulation, RLUSD would be backed by U.S. Treasuries and could even qualify for FDIC insurance in the future. These safeguards could elevate RLUSD to frontrunner status in the stablecoin sector, potentially disrupting a market currently dominated by USDT and USDC.

The analyst further outlined how these developments could propel XRP into broader use among banks and financial corporations. Ripple already leverages XRP in its cross-border Payments solutions, but banking credentials and Fed-level integration would provide a significant boost. Removing dependence on outdated systems such as correspondent banking could allow Ripple to offer faster, cheaper, and more efficient financial services entirely on the blockchain—powered by XRP and the XRP Ledger.

As demand for these modern solutions grows, XRP itself could experience a substantial uptick in real-world usage. The analyst noted that XRP spiked approximately 3–5% following news of the charter application—an early signal of investor confidence. Long-term, as more firms tap into Ripple’s ecosystem, XRP could see increased demand, liquidity, and utility.

Beyond price action, the broader impact is strategic. Ripple’s ambition to become the first blockchain-native full-service bank would include built-in stablecoin issuance, digital asset custody, and near-instant settlements. All of this would operate through Ripple’s existing infrastructure, specifically the XRP Ledger—making XRP indispensable to its offering.

Related: Expert Advice: Sell XRP If You’re Confused

As it stands, RLUSD’s market capitalization hovers around $470 million, dwarfed by USDC’s $62 billion and USDT’s $158 billion. However, with this aggressive regulatory and infrastructural push—and institutional interest on the rise—Ripple may rapidly close that gap. In doing so, it’s highly likely that XRP will benefit directly from this growth trajectory.