Ripple’s Plan to Launch a National Trust Bank Faces Intense Pushback
Ripple’s recent move to establish its own trust bank, the Ripple National Trust Bank (RNTB), is stirring controversy in the traditional finance world. The Independent Community Bankers of America (ICBA), which represents over 5,000 community banks, has formally challenged the proposal, urging the Office of the Comptroller of the Currency (OCC) to deny Ripple’s application.
The ICBA is raising serious concerns about Ripple’s stablecoin, RLUSD. According to the group, this digital asset could drain liquidity from the traditional banking system, mimic full-service bank capabilities without a proper license, and potentially bypass key regulatory checks designed to protect consumers and the financial system.
The ICBA also warned that Ripple’s past run-ins with anti-money laundering laws and securities regulations should not be overlooked. Their argument is clear: RLUSD functions like a deposit but doesn’t follow the rules that apply to actual deposits.
As Ripple pushes forward, the tension between established banks and blockchain startups continues to grow. Is this a step toward financial innovation—or a risky attempt to skirt long-standing rules?