New OCC Rule Pushes Ripple Closer to Becoming a National Bank

• OCC’s latest ruling has edged Ripple closer to becoming a national trust bank.
• The chattering regulation now allows regulated banks to manage non-fiduciary activities.
• Ripple is focusing on managing its RLUSD stablecoin to the highest regulatory standards.

Ripple received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish Ripple National Trust Bank. The move brings the company closer to operating within the U.S. banking system and expanding stablecoin and payments services.

Ripple Moves Toward National Trust Bank

The latest ruling by the OCC edges Ripple closer to becoming a national trust bank, enabling it to gain further access to the banking system and to conduct non-fiduciary activities. It revises the chartering regulation to allow regulated banks to manage non-fiduciary activities alongside fiduciary activities. 

The new rule contains a crucial change in terms from “fiduciary activities” to “operations of a trust company and activities related thereto.”

Ripple President Monica Long believes the new banking charter can completely change the game for XRP and global payments. Speaking about the latest development, Long stated that her company is focusing on managing its RLUSD stablecoin to the highest regulatory standards. She added that Ripple intends to grow RLUSD alongside its cross-border payments business.

Further Long noted that the OCC charter is something Ripple has been seeking for a long time, and acquiring it legitimizes what the company is doing..

OCC Approval Seen as Boost for XRP and RLUSD

The OCC’s final rule takes effect on April 1, allowing national bank charter applicants to engage in custody and safekeeping activities. Besides Ripple, other notable crypto-linked establishments, including BitGo, Fidelity, and Paxos, also acquired the OCC conditional approval.

Analysts consider the latest development a boost for all the establishments involved, particularly Ripple, whose approval they believe will directly benefit XRP and RLUSD. It will open a pathway for the implementation of these digital assets within the US banking frameworks, potentially boosting their adoption.

XRP Price Reacts to OCC Development

XRP’s price bounced off the $1.30 support following the OCC approval, surging nearly 5% within the past 24 hours. The cryptocurrency traded at $1.35 at the time of writing, despite a market-wide thinness in trading volume, according to TradingView’s data.

In the meantime, banking groups have criticized the OCC’s approach. They argue that it creates an uneven playing field, improperly expanding powers for crypto-focused entities. According to reports, the Bank Policy Institute, representing JPMorgan, Goldman Sachs, and Citigroup, is considering a lawsuit against the OCC over the matter.

Related: Ripple Wins Conditional OCC Approval for U.S. Trust Bank