Expert Says What Ripple Becoming a Bank Means for XRP and RLUSD Might Shock You

Ripple’s bold decision to apply for a U.S. bank charter has set the crypto world abuzz, and for good reason. This move, as highlighted by All Things XRP, could fundamentally alter the financial and regulatory landscape for both Ripple’s native token, XRP, and its U.S. dollar-backed stablecoin, RLUSD. More than a regulatory formality, this is a strategic leap that may redefine what a crypto company can become in the era of institutional adoption.

National Bank Status: Legitimacy at a New Level

By seeking a national bank charter, Ripple is positioning itself under the direct supervision of the Office of the Comptroller of the Currency (OCC), similar to powerhouse banks like JPMorgan

This shift would mark a major milestone in Ripple’s evolution from a blockchain payment provider to a full-fledged financial institution. For XRP, the implications are profound. Ripple’s transformation into a federally regulated bank would cast a halo of trust and credibility over XRP, reinforcing its position as a serious player in the financial world.

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In practical terms, this status allows Ripple to operate nationwide without needing state-by-state licenses. It streamlines compliance and sends a powerful signal to institutions and regulators that Ripple is here to build within the system, not outside it.

RLUSD’s Rise: From Stablecoin to Institutional Powerhouse

At the center of Ripple’s banking ambitions is RLUSD, Ripple’s stablecoin launched in December 2024. Ripple’s application includes a request for a Federal Reserve master account, a move that, if approved, would allow Ripple to hold RLUSD reserves directly at the Fed.

This access would effectively eliminate counterparty risk and ensure that every RLUSD in circulation is fully backed and transparently managed. It also opens the door for backing RLUSD with U.S. Treasuries and possibly obtaining FDIC insurance, something rival stablecoins like USDT and USDC cannot currently match.

With oversight from both the OCC and the New York Department of Financial Services (NYDFS), RLUSD could become the most trusted and institutionally compliant stablecoin on the market. This would drastically improve its appeal to banks, corporations, and government entities looking for secure, regulated digital dollar solutions.

XRP Utility and Institutional Adoption

Ripple’s On-Demand Liquidity (ODL) platform, which leverages XRP for instant cross-border settlements, already provides real-world utility. Add in national bank legitimacy and Federal Reserve connectivity, and XRP begins to look extremely attractive to banks and financial institutions seeking faster, cheaper, and compliant payment rails.

The more institutions adopt Ripple’s solutions, the more XRP gains in transactional volume and utility. And in crypto, utility often drives price. XRP surged 3–5% following the announcement, a potential signal of what may come if full approval is granted.

Ripple’s Endgame: Crypto-Native Banking

This isn’t just about compliance; it’s about building a blueprint for the future of finance. Ripple could become the first blockchain-native bank, offering custody, real-time payments, stablecoin issuance, and settlement, all built on the XRP Ledger.

As All Things XRP puts it, this is regulatory chess at its finest. And XRP? It’s the piece that could win the game.

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*