Ripple Applies for Federal Banking Charter: Signaling Major Shift in Crypto Industry Landscape
Ripple Labs, the company behind the fourth-largest cryptocurrency XRP, has announced its application for a U.S. federal banking charter, marking a significant milestone in the convergence of traditional banking and cryptocurrency sectors. This move represents the first major attempt by a cryptocurrency company to obtain a formal banking license to provide traditional financial services, potentially reshaping the entire industry landscape. Strategic Background and Significance Ripple's decision to enter the banking sector extends far beyond simple business expansion, signaling a fundamental transformation in the cryptocurrency industry's approach to traditional finance. Currently, Anchorage Digital stands as the only crypto-related entity in the United States holding a federal banking charter. Should Ripple become the second such company, it would establish a crucial precedent for cryptocurrency firms seeking entry into traditional banking. The primary motivation behi...