Ripple Bank Charter Hype Grows as XRP Reacts to National Trust

Ripple's conditional approval for a national trust bank charter from the U.S. Office of the Comptroller of the Currency has reignited interest in XRP. The news, amplified by social media, positioned XRP as a potential financial infrastructure asset. The conditional approval, however, is not a final confirmation and still requires additional regulatory steps before the charter becomes official.

The XRP price rose to $2.01 as of January 3, 2026, marking a significant increase in its market cap to $122.05 billion, and it briefly became the fourth-largest cryptocurrency. This price increase coincided with a surge in ETF inflows and growing institutional interest in XRP-based products. The movement was driven by renewed optimism around Ripple's regulatory progress.

Exchange-held XRP balances have declined to multi-year lows, suggesting reduced liquidity and tighter market supply. This dynamic may help stabilize price volatility, even amid significant on-chain activity and ETF inflows.

Why Did This Happen?

The hype around Ripple's conditional charter is rooted in the potential for the company to expand its financial infrastructure role. A national trust bank charter could allow Ripple to offer broader custodial and payment services, increasing institutional trust and adoption of XRP.

Social media played a key role in amplifying the narrative. A widely shared post attributed to joker xrip described Ripple as a national trust bank, using strong language to suggest inevitability. This sparked immediate reactions in XRP communities, despite the post lacking verifiable confirmation.

How Did Markets React?

XRP ETFs saw $64 million in net inflows during the week ending January 6, 2026, while Bitcoin and Ethereum-linked products faced heavy outflows. Franklin Templeton's XRPZ led the inflows with $28.6 million, followed by Bitwise with $19 million. According to reports, this marked a significant divergence from broader crypto trends.

The price movement was accompanied by increased trading volume. XRP's 24-hour trading volume surged by 162.02% to $4.21 billion. This activity was supported by ETF inflows and growing interest from institutional players, with some ETFs using swap-based instruments to track XRP's price. Data shows XRP's volume growth outpaced the broader market.

What Are Analysts Watching Next?

Analysts are closely monitoring the next steps in Ripple's regulatory process. The conditional charter is not final, and further approvals are required. Any delays or complications could impact market sentiment and XRP's price trajectory.

Regulatory clarity around digital assets, including the potential passage of the CLARITY Act in the U.S. Senate, is also under scrutiny. Clear rules for how banks and institutions can engage with XRP could influence Ripple's decisions on token unlocking and re-escrowing.

Institutional investors are watching ETF inflow patterns and on-chain data. Exchange-held XRP balances have declined significantly, suggesting tighter liquidity and potentially higher sensitivity to demand. Standard Chartered has projected XRP could reach $8 by the end of 2026, factoring in ongoing regulatory developments and ETF activity. Analysts project this price target based on current market dynamics.