$XRP #RippleXRP #RippleUpdate Ripple is now among the first cryptocurrency companies to receive a banking license in the US.
Ripple, a leading blockchain payments company, has begun its efforts to obtain a national bank charter in the US, the move was announced by Ripple CEO Brad Garlinghouse on social media.
Obtaining a national bank charter will allow Ripple and other crypto companies to simplify the payment process and reduce costs by eliminating the need for intermediary banks.
The recognition will also provide the company with strong evidence of legitimacy, especially after years of regulatory uncertainty.
The US banking regulator Office of the Comptroller of the Currency (OCC) has confirmed that it has received Ripple’s application, which will undergo rigorous review before approval.
Ripple also wants access to the Federal Reserve’s master account, which would allow it to manage its stablecoin RLUSD reserves directly with the central bank. RLUSD launched in October last year and, while it is smaller than major players in the market such as Tether (USDT) and Circle (USDC), it has a market value of around $470 million.
The move is particularly significant as Ripple nears the end of its long-running legal battle with the US Securities and Exchange Commission (SEC).
Garlinghouse has hinted that both sides could potentially drop appeals, potentially ending the long-running dispute.
The move will allow Ripple to refocus on its core mission of building the “Internet of Value”, a vision to transform the global payments system.
The resolution of Ripple’s legal situation could also pave the way for financial products tied to its related cryptocurrency XRP, especially as major investment firms are showing interest in exchange-traded funds (ETFs) incorporating XRP.
This week, Circle also announced a national listing in the US. has announced its intention to establish a trust bank, after which its IPO has been successfully completed,