news 
Ripple applies for U.S. bank license – Next big step in crypto’s Wall Street takeover?
In a recent update, Ripple has applied for a bank license in the United States, marking a significant milestone in its quest to bridge the gap between traditional finance and cryptocurrencies. The development has sent shockwaves throughout the financial world, with some experts hailing it as a crucial step towards crypto’s Wall Street takeover.
As part of its stablecoin plan, Ripple is seeking a Fed Master account, which would grant it direct access to hold $RLUSD reserves with the Federal Reserve. This move comes in response to the recent passage of the GENIUS Act, a bill that mandates stablecoin issuers be either chartered non-banks, U.S banks, or credit unions.
It is not surprising that Ripple has taken this step, given its long-standing commitment to mainstream adoption and the increasing relevance of stablecoins in today’s financial landscape. By leveraging a bank license, the company can strengthen its position as a leader in the crypto space by providing more secure and reliable services.
Moreover, Ripple’s application serves as a catalyst for other players in the crypto market, particularly those focused on stablecoin issuance. The likes of Circle, Erebor, Wise, Paxos, and Anchorage Digital Bank have also initiated similar applications, with Paxos being the first to receive approval.
While some experts believe this move could be a game-changer, others remain skeptical about the prospects of crypto firms competing against established traditional financial institutions (TradFi). BitMEX Founder Arthur Hayes has voiced his concerns that any crypto firm attempting to become a bank would ultimately be at a disadvantage due to regulatory hurdles and lack of experience.
However, Ripple’s bold move has triggered a significant surge in its native token XRP, with bulls driving the altcoin to $2.3, a key short-term target. This market optimism is reflected in the weighted sentiment spike, which reached a two-month high following the announcement.
As the crypto space continues to evolve and mature, it will be interesting to observe how Ripple’s application fares amidst regulatory hurdles and skepticism from some quarters.
Source: ambcrypto.com
