👉Ripple will become a bank: but not for the reasons everyone... expects.

What's really in Ripple 's application to obtain a banking license in the US through one of its subsidiaries ? Now there are public documents to check, verify, or even just read . This will allow us to understand the details of an operation that actually replicates that of Circle, the company that manages USDC .

It will not be – as we anticipated – a traditional bank : it will not receive deposits , it will not manage direct clients, it will serve almost exclusively for RLUSD , the stablecoin launched by Ripple at the end of 2024 and which is trying to carve out a space that is certainly crowded, but also has great prospects.

💥What is Ripple doing? Why does it want a bank?

It will be a license from the lowest level of the complex U.S. banking system. It will not be a license that will guarantee immediate affiliation with the Federal Reserve and will be obtained primarily for one purpose:

Ripple is issuing a dollar-backed stablecoin—RLUSD or Ripple USD—through its subsidiary Standard Custody & Trust Company. Once licensed, Trust Bank will conduct complementary activities to Ripple's stablecoin and other payment businesses, including managing stablecoin reserves.

This is what can be read directly from the license application that Ripple sent to the OCC, which is the relevant federal office for this type of practice.

There will be no lending or deposit activity by customers or, more generally, anything we are used to finding in a traditional banking institution.

💥No mention of XRP $XRP

There's no mention of $XRP or any services related to the Ripple ecosystem's main cryptocurrency in the document. This isn't news, nor should it surprise us. This is because the RLUSD and XRP businesses are actually relatively separate.

Ripple itself has chosen to issue RLUSD on the Ethereum network as well , a sign of a business that aims to become something bigger than what exists today on XRPL, Ripple's own ledger.

We remind our readers that Circle , the company that issues USDC , has also made the same request, even though in that case the reserves are all invested in a money market fund managed by BlackRock.

💥Wave of institutionalization of the sector

The new US administration has facilitated a significant shift in the cryptocurrency space. Ripple, after resolving its legal challenges with the SEC, will also attempt to become a bank. Circle went public, receiving a huge response from the markets themselves.

Kraken and Gemini will also be listed , along with BitGo . Justin Sun, head of the crypto network of the same name, also went public . And many, many more are to come.

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