Ripple Wins US National Trust Bank Charter

What Happened

The Office of the Comptroller of the Currency (OCC) has officially granted conditional approval for a National Trust Bank charter to Ripple Markets. This historic decision makes Ripple one of the first major crypto-native companies to secure federal banking status in the United States, alongside peer approvals for Circle and BitGo.

This move effectively pierces the “regulatory veil” that has long separated the crypto industry from the traditional U.S. banking system. While “conditional” implies that Ripple must still meet specific pre-opening requirements, such as final capital injections and compliance framework audits, the charter signals a definitive end to the years of hostility between federal banking regulators and the crypto sector.

Key Details

• Federal Preemption: As a national trust bank, Ripple is now regulated primarily by the OCC, preempting many state-level money transmitter laws. This drastically simplifies their compliance overhead across 50 states.
• Fiduciary Powers: The charter allows Ripple to hold assets in custody for institutional clients with the highest level of fiduciary duty, a critical requirement for Wall Street adoption.
• The “Bundle” Approval: Ripple was not alone. The OCC simultaneously approved applications from Circle (issuer of USDC) and BitGo, signaling a coordinated policy shift rather than a one-off exception.
• RLUSD Integration: The charter provides a federally regulated runway for Ripple’s stablecoin, RLUSD, potentially positioning it as a preferred settlement instrument for regulated U.S. institutions.

Why It Matters

The End of “Debanking” Risks

For years, the existential threat to crypto firms was the loss of banking partners (the so-called “Chokepoint 2.0”). By becoming a bank itself (specifically a National Trust Bank), Ripple reduces its dependency on third-party intermediaries for custody and settlement operations. While a trust charter does not grant direct access to the Federal Reserve’s discount window or deposit insurance in the same way a full commercial bank charter does, it is a massive leap toward sovereign operational security.

Institutional Floodgates

Major asset managers like BlackRock and Fidelity require custodians with federal oversight. State charters (like the New York Trust Charter) are strong, but an OCC National Charter is the gold standard. This approval removes the final “regulatory uncertainty” excuse for hesitant institutional allocators looking to use Ripple’s infrastructure for tokenized asset settlement.

The Backstory

This approval comes after a grueling multi-year battle. Dating back to 2020-2021, former Acting Comptroller Brian Brooks mooted the idea of crypto-native national banks (remember the “Fintech Charter”?). However, the Biden administration’s subsequent regulators largely froze these initiatives.

The 2025 pivot represents a complete reversal. It follows the clear failure of the “regulation by enforcement” strategy and acknowledges that integrating crypto firms into the federal banking system provides better oversight than pushing them offshore. Ripple, having fought the SEC to a standstill, has now effectively “leveled up” above the fray of securities litigation into the tier of federally chartered financial institutions.

What’s Next

Timeline:

• Q1 2026 (Launch): Ripple is expected to satisfy all conditional requirements and officially open the “Ripple National Trust Bank” for business.
• Fed Master Account Battle: The next logical step is applying for a Federal Reserve Master Account. If granted, Ripple could settle payments directly with the Fed, bypassing commercial banks entirely. Expect a legal battle here, similar to Custodia Bank’s struggle, though Ripple’s political capital is currently at an all-time high.
• RLUSD Expansion: Expect aggressive marketing of RLUSD to U.S. banks, pitching it not just as a stablecoin, but as a “federally chartered bank-issued settlement token.”

The Verdict

This is the moment the crypto industry has been waiting for. The “Wild West” era is officially over, replaced by the era of Federally Chartered Crypto. For Ripple, this is arguably a bigger win than their partial victory over the SEC. A lawsuit defense is about survival; a bank charter is about dominance. By securing the same regulatory status as the oldest trust banks in America, Ripple has cemented its place as a permanent pillar of the U.S. financial settlement layer.