Ripple applies for a banking license in America: Is XRP really bullish?

This week, Ripple (XRP) has applied for a national bank charter in America — an important step bringing the company closer to the regulated traditional financial system. However, the market's reaction has been rather muted, and there are good reasons for that.

The price of XRP only increased by about 3% after the news was released. This modest increase reflects the reality that the banking license (, if approved, ) has not yet directly improved the applicability or legal status of XRP.

Ripple becoming a legal custodian in America does not mean growth for XRP

The application for a license is submitted to the Office of the Comptroller of the Currency (OCC), the federal agency that oversees banking trust organizations in America.

Ripple aims to operate as a regulated banking entity, allowing them to custody (custody) digital assets and manage stablecoin reserve funds for a new product called RLUSD. This move is similar to the strategy of several other crypto companies, such as Circle and Fidelity.

However, Ripple's strategy has only a limited impact on the price or demand for XRP in the short term.

It is important to note that the license from the OCC will not change the current legal status of XRP in America. Previously, Ripple withdrew its cross-appeal in the lawsuit with the U.S. Securities and Exchange Commission (SEC). This means that the federal court ruling in 2023 remains in effect.

In summary, the ruling states that transactions of XRP with retail investors are not considered securities, but the sales of XRP to institutions conducted by Ripple have violated securities laws.

This ban is still in effect and Ripple is not allowed to sell XRP to organizations in America without a valid registration or exemption from the SEC.

Therefore, even if Ripple becomes a legitimate bank, they cannot leverage that license to restart the sale of XRP to domestic institutions. At the same time, this does not make XRP an approved or regulated asset under federal securities law.

XRP Price Chart | Source: Tradingview## Conditional Bullish Scenario

A banking license could open up better integration capabilities between Ripple's services — particularly the stablecoin RLUSD — and the company's broader infrastructure.

If Ripple uses banking capabilities to serve managed customers, XRP could indirectly benefit as a liquidity bridge. However, this depends on new business flow and the expansion of payment corridors, not legal changes.

In the future, Ripple may leverage its banking status to build trust with organizations in America. This could rekindle interest in using XRP in the tokenized asset system or cross-border payment platforms.

However, this is a long-term story, not an immediate catalyst. At this moment, the price movement of XRP reflects that reality. Traders are pricing XRP based on the company's legal compliance story, rather than on the upgrade in the token's utility.

Until XRP becomes central to the bank-supported activities of Ripple, the market will continue to view this move as neutral regarding the value of the token.

Ripple's banking license, if approved, could reshape the company's legal profile. However, XRP's status remains unchanged — partially approved for retail investors, restricted for institutions, and still awaiting a real breakthrough in practical application.

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