XRP News Today: Ripple Pursues Banking Charter for Direct Federal Reserve Access

Ripple is making significant strides that could potentially transform both the cryptocurrency and traditional finance sectors. According to analyst Vincent Van Cod, Ripple is pursuing a banking charter and access to a Federal Reserve master account. If approved, Ripple could become the first crypto-native institution with the capability to operate as a full-service bank.

This development has several implications. Firstly, Ripple could hold reserves directly with the Federal Reserve, eliminating the need for intermediary banks to store funds. This privilege is currently limited to a select few trusted institutions. Secondly, Ripple would be able to offer a range of banking services, likely integrating both fiat and cryptocurrency features, such as deposits and payments. Thirdly, the company could potentially lend money using XRP or other crypto assets as collateral, enabling users to secure loans by locking up their XRP, possibly all done on-chain.

Additionally, Ripple would be well-positioned to offer core cross-border remittance services on a much larger scale. This is already one of Ripple’s key strengths, and obtaining a banking license would further enhance its capabilities. Furthermore, Van Cod speculates that Ripple’s bank could offer FDIC protection up to $250,000 per account, potentially including some cryptocurrencies in that coverage. This would be a significant step forward for crypto legitimacy in the U.S.

Despite this potentially transformative news, the price of XRP remains stagnant, fluctuating between $2.00 and $2.50. The price has been moving sideways for weeks, with no clear direction. Traders and long-term holders are awaiting a catalyst to trigger the next move. However, if Ripple successfully becomes the first crypto bank with direct access to the Federal Reserve and offers insured deposits, this could be the catalyst that the market has been waiting for.

According to Van Cod, this development could mark the beginning of a new era, where traditional banking starts to lose its dominance, and cryptocurrency steps into the mainstream spotlight. Whether or not XRP breaks out soon, Ripple’s long-term vision appears more ambitious than ever, with the potential to reshape the financial landscape as we know it.