Ripple's Path to Banking Authority: What Brad Garlinghouse's OCC Breakthrough Really Means

Ripple just hit a major regulatory milestone. Brad Garlinghouse announced that the company has secured conditional approval from the US Office of the Comptroller of the Currency (OCC) to establish Ripple National Trust Bank. This isn’t just bureaucratic paperwork—it’s a fundamental shift in how the crypto industry interfaces with traditional finance.

The Conditional Approval: A Three-Layer Strategy

The OCC’s green light represents the first phase of Ripple’s broader regulatory framework. RLUSD, the company’s stablecoin, will now operate under dual oversight: federal supervision from the OCC and state-level regulation from the New York Department of Financial Services. This dual-layer approach is precisely what skeptics said crypto companies would never accept.

Garlinghouse’s response to critics was pointed. Banking lobbyists have long argued that crypto enterprises dodge regulation, but Ripple is proving otherwise by volunteering for the same compliance burden traditional banks shoulder. “What are you so afraid of?” Garlinghouse challenged regulators and competitors alike, positioning compliance not as a constraint but as competitive advantage.

Why This Matters Beyond RLUSD

The conditional approval is actually the gateway to something bigger. Ripple is simultaneously pursuing a full US national bank charter and a Federal Reserve master account—two credentials that would fundamentally reshape how the company operates.

If granted, these would grant Ripple direct access to Fedwire and the US payments infrastructure. Instead of relying on correspondent banking relationships, Ripple could settle transactions directly in US dollars. The practical implication: international transfers processed faster and at lower cost.

Currently, XRP’s cross-border utility depends partly on third-party banking partners. A Fed master account would eliminate that middleman dependency entirely. Ripple would control its payment operations end-to-end, potentially increasing XRP’s real-world application in institutional settlement flows.

Industry Implications: First-Mover Advantage

If both the bank charter and Fed master account are approved, Ripple would become the first blockchain-native company with this level of embedded access to the US financial system. That’s unprecedented territory.

For the XRP community, the implications are significant. If Ripple operates as a legitimate regulated financial institution, traditional banks and payment processors become more comfortable incorporating XRP into their infrastructure. It shifts the narrative from “speculative crypto asset” to “regulated payments rail.”

Analysts suggest this could accelerate institutional adoption of XRP for liquidity management, particularly in cross-border corridors where speed and cost efficiency matter most. Market confidence in the token could strengthen as regulatory certainty increases.

The Bigger Picture

This development signals a decisive moment: leading crypto companies are no longer fighting regulation—they’re embedding themselves within it. Ripple’s conditional approval demonstrates that regulatory integration, rather than regulatory evasion, is becoming the path forward for blockchain enterprises seeking to scale within traditional financial systems.

Whether the full bank charter and Fed master account approvals follow, Ripple has already demonstrated a willingness to operate under the same rules that govern the banking sector. Brad Garlinghouse’s strategic positioning isn’t just about RLUSD compliance—it’s about reshaping how the entire industry relates to financial regulation.