Ripple’s National Trust Bank Approval Could Reshape Crypto Banking

Ripple has reached a major regulatory milestone after receiving conditional approval from the United States Office of the Comptroller of the Currency to operate as a national trust bank. While this does not turn Ripple into a traditional bank, it places the company under direct federal supervision and signals growing acceptance of crypto firms within the US financial system. 

The decision could influence how digital assets are stored, managed and regulated in the years ahead.

What the National Trust Bank Approval Means

A national trust bank operates very differently from a commercial bank. It does not accept public deposits or issue loans. Instead, its role is focused on safeguarding assets, providing custody services and settling transactions. This structure aligns closely with the needs of crypto and tokenised assets.

For Ripple, the conditional approval means it can eventually operate across the United States under one federal regulatory framework, rather than relying solely on individual state approvals. Once final conditions are met, Ripple would join around sixty national trust banks currently supervised by the OCC.

Read Also: Ripple Gets Broader Approval In Singapore – XRP & RLUSD Ready For Institutional Use

This form of oversight brings added legitimacy. It demonstrates that Ripple meets strict compliance and operational standards, countering the idea that crypto companies operate outside established financial rules. At the same time, the trust bank model limits risk, as it avoids consumer lending and deposit taking.

Why Regulators Are Opening the Door to Crypto Firms

Ripple is not alone in receiving approval. Other firms such as BitGo, Fidelity Digital Assets and Paxos were also granted conditional approval, while Circle received preliminary authorisation. Together, these decisions suggest a broader regulatory shift rather than an isolated case.

According to the OCC, allowing new entrants into the federal banking system can encourage competition and innovation while improving consumer access to financial services. Bringing crypto firms under federal supervision may also provide regulators with clearer oversight compared to fragmented state level regulation.

Read Also: XRP Drops 5% Even After Ripple’s Singapore Payments License — What Investors Should Know

Not everyone supports the move. Some banking industry groups have raised concerns that crypto firms could benefit from lighter regulatory treatment. In response, the OCC has stressed that final approval will only be granted after all regulatory conditions are fully satisfied.

This cautious approach reflects an attempt to balance innovation with financial stability, rather than offering crypto companies unchecked access to the banking system.

How This Could Shape the Future of Crypto Banking

Ripple CEO Brad Garlinghouse described the approval as a response to criticism from traditional banking lobbyists. He noted that Ripple’s trust bank would place the company under both federal oversight from the OCC and state supervision from the New York Department of Financial Services, particularly for its US dollar stablecoin, RLUSD.

If final approval is granted, Ripple would be able to hold and manage assets on behalf of customers and support faster payment settlement. While this does not radically change Ripple’s business overnight, it strengthens its position as financial infrastructure rather than a speculative crypto project.

Read Also: Ripple’s Transparency Push: How Public XRPL Hub Elevates XRP’s Market Position

Market reaction to the news was relatively muted, suggesting investors view this as a long term structural development. Over time, national trust bank charters could reduce friction between crypto firms and traditional financial institutions by providing clearer rules and regulatory certainty.

This model may become increasingly important as regulators seek practical ways to integrate digital assets into the existing financial system without forcing them into unsuitable frameworks.

Conclusion

Ripple’s conditional national trust bank approval marks an important step in the gradual integration of crypto into regulated finance. It shows that crypto firms can operate within established regulatory structures while focusing on custody and settlement rather than traditional banking activities. While final approval is still pending, the move sets a precedent that could influence future crypto regulation in the United States.

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FAQ

What is a national trust bank

A national trust bank provides custody, settlement, and fiduciary services but does not accept deposits or issue loans like a traditional bank.

Did Ripple become a full bank

No. Ripple received conditional approval for a national trust bank charter, not a commercial banking licence.

Who approved Ripple’s application

The approval was granted by the United States Office of the Comptroller of the Currency.

Can Ripple accept customer deposits

No. Even with final approval, national trust banks are not allowed to take deposits or make loans.

Why is this approval important for crypto

It brings crypto firms under federal oversight, improving regulatory clarity, trust, and long term integration with the financial system.