Ripple’s application for a national banking charter has met stiff resistance from the Bank Policy Institute (BPI), representing 42 of the United States’ largest banks. The BPI recently submitted objections to Ripple’s request to the Office of the Comptroller of the Currency (OCC), voicing concerns over regulatory gaps and structural irregularities in the company’s proposal.
The application, now publicly available, sheds light on Ripple’s ambitious plans to offer stablecoin-related services using RLUSD, act as a custodian for digital assets, and secure direct access to the U.S. payment infrastructure through a Federal Reserve master account. If granted, the charter would allow Ripple to operate with the same privileges as a traditional bank—an idea that many legacy institutions are not comfortable with.
In addition to structural concerns, critics also flagged the unusually short public comment window, which ran from July 16 to August 4. The BPI, alongside the American Bankers Association, argued that the timeline was far too brief to evaluate a banking model so deeply tied to cryptocurrency operations. They also questioned Ripple’s alignment with fiduciary standards typically expected of trust banks, saying its proposed structure diverges significantly from traditional estate and trust models.
This pushback comes as Ripple continues to wrestle with legal uncertainty surrounding the classification of its XRP token, stemming from its prolonged legal battle with the Securities and Exchange Commission (SEC).
At the heart of the issue lies a deeper divide between traditional finance and blockchain innovation. Ripple’s goal of enabling fast, low-cost, token-based payments challenges long-established systems like SWIFT and wire transfers. With a network of over 300 institutional clients across more than 50 global markets, Ripple is advocating for a financial infrastructure where legacy institutions don’t dictate access.
This tension—between decentralised innovation and entrenched financial power—could play a defining role in how crypto firms are regulated moving forward. Ripple’s attempt to secure a U.S. banking license may not just shape its future but also influence how digital finance evolves across the country.
