Ripple Moves into Banking Sector with National Trust Bank Filing

Ripple, a leading cryptocurrency company, has taken a significant step into the banking sector by filing with the Office of the Comptroller of the Currency (OCC) to establish a national trust bank in the United States. The proposed Ripple National Trust Bank, based in New York, will focus on digital asset custody and related financial services. This move comes as the Federal Reserve prepares to fully adopt the ISO 20022 messaging standard for its real-time settlement system, scheduled to go live on July 14, 2025. The ISO 20022 standard, already in use in multiple countries, aims to enhance the efficiency and interoperability of cross-border payments.

Ripple's integration with the ISO 20022 standard is expected to boost its institutional use, as it complies with the new messaging protocol. This compliance positions Ripple's XRP, along with other digital assets like Stellar, Cardano, Algorand, Quant, and Hedera, to benefit from the enhanced payment infrastructure. The adoption of ISO 20022 by the Federal Reserve aligns with Ripple's broader strategy to integrate its RippleNet platform with traditional banking systems.

The Federal Reserve, along with the Federal Deposit Insurance Corporation and the OCC, has issued joint guidance on banking institutions providing cryptocurrency custody services. This move aims to standardize crypto custodial practices across banks, ensuring safe execution and compliance with applicable laws. Banks are reminded that crypto custody must satisfy various regulatory requirements, including the Bank Secrecy Act, anti-money laundering, and counter-terrorism financing regulations. The agencies emphasized the need for robust risk management systems to handle potential threats such as hacking, system failures, and the loss of private keys.

Banks are permitted to hold crypto assets for their customers in either a fiduciary or non-fiduciary capacity, with specific guidelines for each scenario. In fiduciary safekeeping, banks act on behalf of the customer with legal authority, similar to a trustee or investment advisor. They must adhere to specific federal rules under 12 CFR 9 or 150, as well as any applicable state laws or agreements. For non-fiduciary safekeeping, banks must still protect the assets with strong systems to guard against various risks. The agencies stressed that any bank offering this service must build a solid risk-management framework and update it as the crypto market evolves.

The statement also noted that the crypto world is rapidly changing, and banks need to keep up with these changes. Any bank offering crypto storage must follow the law and ensure that all activities are conducted in a safe and sound manner, similar to other banking services. The regulators have been issuing several updates to guide banks in the crypto space. In May, the OCC confirmed that banks are now allowed to buy and sell crypto for themselves. The FDIC also changed its approach, stating that banks do not need to get permission before starting crypto activities.

The joint guidance aims to standardize crypto custodial practices across banks, ensuring safe execution and compliance. The agencies reminded banks that such activities must be conducted in a safe and sound manner and in compliance with applicable laws. The statement also emphasized the need for banks to plan ahead, check their safety measures, and be ready to fix problems quickly. The evolving nature of the crypto-asset market requires banks to consider the risks involved and implement strong systems to manage these risks effectively.

While a bank can hold crypto assets on behalf of a client, the agencies reaffirmed that the liability for safekeeping rests with the bank. As such, banks have to assume full control of the assets, in this case, the keys. Per the guidance, a banking organization has to “reasonably demonstrate” that no other party, including the customer, can access the assets while still under the safekeeping of the bank. Banks are also allowed to use third-party custody vendors. However, the bank in question is the one responsible and will be liable for the third party’s actions.

The Federal Reserve, FDIC, and OCC’s statement comes amid an observable shift in the regulatory approach to bank and crypto in the U.S. The FDIC, for instance, released documents related to crypto debanking in February 2025, and in March, clarified that banks can engage in crypto-related activities without having to seek prior approval from the agency. The Federal Reserve also issued a similar guidance in April. This shift indicates a more open approach to supervising bank involvement in crypto assets, paving the way for institutional adoption and integration of digital assets into traditional banking services.

Ripple's partnership with BNY Mellon on RLUSD custody further underscores its commitment to bridging the gap between traditional finance and the crypto world. This collaboration is expected to enhance the security and efficiency of digital asset custody, aligning with the broader regulatory framework set by the Federal Reserve and other banking regulators. As the ISO 20022 standard goes live, Ripple is well-positioned to capitalize on the growing institutional use of its technology, paving the way for a more integrated and efficient financial ecosystem.