XRP: New Bank Charter May Open Door for Ripple License

XRP supporters have new reason for optimism as Ripple could soon gain a clearer pathway into traditional finance, thanks to efforts led by U.S. political figure and entrepreneur Greg Kidd. Kidd, a former congressional candidate, revealed during the XRP Las Vegas conference that he is working on a game-changing bank charter that may pave the way for Ripple and similar fintechs to acquire banking licenses.

In a sit-down interview with journalist Eleanor Terrett, Kidd shared insights about his current involvement in shaping financial legislation. Although he has stepped away from electoral politics, Kidd’s focus now is on innovating within the financial ecosystem. His new proposal centers around a special banking charter designed exclusively for entities that handle deposits and payments—eliminating the requirements for physical branches and credit-based services.

The core idea is to serve digital-first organizations. With Ripple’s blockchain-based payments infrastructure, this aligns closely with their business model, even though Kidd made clear he isn’t claiming Ripple has applied for such a license. Still, the new charter could remove a major barrier for fintechs like Ripple, enhancing their ability to compete with legacy banks.

According to Kidd, the traditional dominance of major financial institutions has created an exclusionary landscape. This proposed charter would open the market to innovative players—ranging from digital wallets and international remittance services to large-scale retailers—allowing them a seat at the banking table without traditional infrastructures.

Kidd also highlighted the economic and technical benefits of blockchain-powered payments. Referencing data that shows XRP Ledger’s transaction fees are almost zero, he emphasized that the cost of sending money should reflect such efficiency. In his vision, payment systems should operate as public utilities—affordable, fast, and broadly accessible.

Despite the potential for disruption, Kidd voiced concern about the challenging environment for obtaining a banking license under current administration policies. He mentioned that only a few individuals—including himself and Jackie Reses, Chairwoman of Lead Bank—have successfully navigated the process. This points to a critical access issue that Kidd hopes to resolve through more inclusive legislation.

He also traced today’s financial challenges to overregulation following the 2008 financial crisis. In Kidd’s view, the system moved away from innovation and competition, something the new charter aims to restore.

Meanwhile, Ripple has already begun deepening its roots in the banking sector. In June 2024, Ripple became a Platinum Member of the American Bankers Association (ABA), a major step forward in increasing its visibility among pivotal financial decision-makers. This membership opens doors to discussions at the highest levels of banking policy and regulatory reform.

Ripple’s CEO Brad Garlinghouse echoed similar themes during the Las Vegas event. As he confirmed, Ripple intends to “rewire the entire banking system” by offering faster and more efficient cross-border transaction solutions. Rather than aiming to replace banks, the company wants to act as a partner—streamlining the outdated mechanics of global money movement, like removing intermediaries and the need for pre-funded accounts.

In his broader push to bring the banking world on-chain, Kidd spoke about his current venture: Vast Bank. The acquisition was part of a larger mission to integrate blockchain technology directly into banking infrastructure. Kidd wants U.S. dollars and other fiat currencies to exist in tokenized form on secure blockchain networks like the XRP Ledger. These on-chain assets would retain traditional banking protections—such as FDIC insurance—while enabling 24/7 transactions and real-time settlement globally.

Additionally, Kidd disclosed his investment in the Bank of London and ongoing negotiations in Europe. His aim is to onboard not just dollars, but also pounds and euros, onto blockchain systems, thus creating a fully operational financial ecosystem that never sleeps.

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

As Ripple continues to align itself closely with both blockchain innovation and institutional finance, these developments suggest a dynamic shift in how tomorrow’s financial frameworks could emerge—with XRP and Ripple potentially standing at the heart of it.