XRP Faces Minor Dip as Market Sentiment Remains Positive Amid Rising Interest in Banking Licenses by Major Crypto Firms

• XRP has experienced a minor dip, yet the overall market sentiment remains buoyant, with the global crypto market cap reaching an impressive $2.76 trillion.

• Several major cryptocurrency firms are actively pursuing U.S. bank charters, as the regulatory landscape becomes clearer, aiming to integrate more closely with the traditional banking system.

• Attorney John Deaton expressed surprise at Ripple’s absence from the list of firms seeking banking licenses, given its strategic position within the financial sector.

This article explores the recent trends among crypto firms pursuing banking licenses, highlights Ripple’s unexpected absence, and discusses XRP’s current market performance.

Crypto firms push for banking licenses amid regulatory clarity

According to insiders cited by the Wall Street Journal, firms like Circle, BitGo, Coinbase, and Paxos are exploring banking charters in a bid to operate under more structured legal frameworks. This trend reflects a growing desire among crypto companies to attain legitimacy in a tightly regulated environment.

This move comes as U.S. regulators, spurred by a history of industry setbacks, push to define clear rules for stablecoins. Federal Reserve Chair Jerome Powell has acknowledged the growing appeal of digital assets, emphasizing that establishing a stablecoin framework is not just timely but essential for the evolution of the financial landscape.

Ripple’s absence from the banking charter pursuit

Amid the buzz surrounding crypto firms exploring banking charters, attorney and Ripple [XRP] advocate John Deaton voiced his surprise at Ripple’s absence from the list. Given Ripple’s ongoing push to revolutionize cross-border finance and its deep integration with traditional financial systems, Deaton expected the company to be among those seeking formal banking status.

Deaton’s comments on X, stating, “Surprised not to see @Ripple on this list. It was a matter of time.”, reflect a sentiment shared by many in the industry who recognize Ripple’s importance in the financial ecosystem.

For context, the pursuit of a bank charter would allow crypto firms to function more like traditional financial institutions, offering a broader range of services under regulatory oversight.

Other developments concerning Ripple’s strategic moves

Deaton’s reaction to Ripple’s absence from this movement likely stems from the company’s persistent efforts to cement its role in global finance, particularly through its robust payment infrastructure. Notably, Ripple’s $1.25 billion acquisition of prime brokerage firm Hidden Road underscores its ambition to deepen its service offerings and solidify its presence across institutional markets.

This unexpected lack of interest in a banking license could be strategic, especially since Ripple is currently entrenched in a legal battle with the U.S. SEC over the status of XRP. While Ripple has yet to pursue a bank license, the possibility remains viable, particularly once this legal standoff reaches resolution.

In fact, the recent court decision to grant a joint motion to pause the XRP case suggests a settlement may be imminent, which could pave the way for Ripple to revisit the idea of obtaining banking status.

XRP’s price movement and market outlook

Meanwhile, XRP was trading at $2.09 at press time, following a minor dip of 1.10%, reflecting broader market fluctuations. Despite this decrease, overall sentiment remains positive, with the global crypto market cap climbing to $2.76 trillion, up 0.58% in the past 24 hours. This uptick hints at renewed investor confidence across the digital asset space, suggesting that the market is poised for further growth.

Conclusion

The current landscape of crypto firms seeking banking charters underscores a pivotal moment in the integration of digital assets with traditional finance. While Ripple’s decision to abstain from this movement raises eyebrows, its ongoing initiatives, such as significant acquisitions and collaborations, reflect a strategic approach to navigating the complex financial regulatory environment. As the market stabilizes, XRP’s performance and the outcome of Ripple’s legal battles will be critical in shaping its future within the evolving crypto landscape.