OCC Rule Change Brings Ripple a Step Closer to a National Trust Bank

Ripple is a step closer to operating as a U.S. national trust bank after a recent rule update from the Office of the Comptroller of the Currency (OCC) and the agency's conditional approval for the company to establish Ripple National Trust Bank. The OCC's updated chartering framework broadens permissible trust-bank operations by allowing banks to conduct nonfiduciary activities alongside fiduciary functions. The rule also updates key language, shifting the focus from "fiduciary activities" to "operations of a trust company and activities related thereto." Ripple President Monica Long said the charter could be a major milestone for XRP and global payments. She added that Ripple is prioritizing oversight and compliance around its RLUSD stablecoin, aiming to manage it to the highest regulatory standards, and plans to scale RLUSD in tandem with its cross-border payments business. Long noted the OCC charter is something Ripple has pursued for years and said obtaining it helps legitimize the firm's activities. The OCC's final rule takes effect April 1 and permits national bank charter applicants to engage in custody and safekeeping services. Ripple is not the only crypto-linked firm to receive conditional approval; BitGo, Fidelity, and Paxos were also approved. Market participants view the development as constructive for the firms involved, with some analysts expecting Ripple's approval to support adoption of XRP and RLUSD by creating a path for use within U.S. banking frameworks. XRP rose after the news, rebounding from the $1.30 support level and gaining nearly 5% over the past 24 hours to about $1.35 at the time of writing, according to TradingView data, despite broadly light trading volumes. The OCC's approach has drawn criticism from banking industry groups, which argue it could create an uneven playing field and expand powers for crypto-focused entities. The Bank Policy Institute, which represents JPMorgan, Goldman Sachs, and Citigroup, is reportedly weighing legal action against the OCC. Disclaimer: This content is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for any losses resulting from the use of any content, products, or services referenced. Readers should exercise caution before taking any action related to the company.