Ripple receives surprising news to operate as national trust bank

Core Insights - Ripple has received conditional approval from the United States Office of the Comptroller of the Currency (OCC) to operate as a national trust bank, marking a significant milestone for the company in its efforts to integrate with the U.S. banking system [1][2] Group 1: Regulatory Approval - The OCC conditionally approved five national trust bank charter applications, including Ripple, BitGo, Fidelity Digital Assets, and Paxos, following a rigorous review process [2] - The newly approved institutions will join approximately 60 national trust banks currently supervised by the OCC, promoting competition, innovation, and consumer access to financial services [3] Group 2: Trust Bank Functionality - National trust banks are primarily used for custody, settlement, and fiduciary services, making them suitable for crypto and tokenized assets, allowing companies like Ripple to gain federal oversight without the risks associated with full consumer banking [4] Group 3: Company Response and Market Reaction - Ripple CEO Brad Garlinghouse stated that the approval would initially support Ripple's U.S. dollar stablecoin, RLUSD, and would be subject to federal oversight from the OCC and state-level supervision by the New York Department of Financial Services [5] - Garlinghouse criticized traditional banking lobbyists, asserting that the crypto industry is prioritizing compliance and innovation under OCC supervision [6] - Following the announcement, XRP, Ripple's native token, traded around $2, showing a slight increase of 0.8% in the past hour and a 0.6% rise overnight [6]