- The banking license approval would grant Ripple access to FedWire and full banking privileges, allowing it to bypass legacy systems like SWIFT and expand its RLUSD stablecoin.
- 42 banks have opposed this approval, citing risks to financial stability and fiduciary concerns.
Ripple’s application to become a national bank and get a master account in the Federal Reserve has faced vehement block attempts by traditional financial entities. It has been reported that 42 big U.S. banks (members of the Bank Policy Institute (BPI) lobbyist group) have asked regulators to reject the Ripple application on the basis of risk, fiduciary duty, and systemic importance.
42 Banks Aim To Block Ripple’s Banking License
Among the key and most powerful members of the BPI are JPMorgan Chase & Co., Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley, among others. The response of the group, according to reports, was swift following the filing of Ripple’s application in July 2025, where they requested regulators to oppose the application.
If approved, it would mean Ripple having direct access to FedWire, the high-speed payment system of the Federal Reserve, which would be legally seen as a full bank status. Another measure that the firm intends to deploy is the further issuance of its stablecoin, RLUSD, that coexists with its existing digital asset, XRP.
While the BPI has made its reservations on the action carried out, citing regulatory and fiduciary issues, industry netizens feel that resistance is based on fear of being disrupted. These online commentators see Ripple based on the instant settlements, decentralized liquidity using XRP, and removal of intermediaries as a direct threat to traditional banking infrastructure.
Ripple has marketed itself as a regulated, crypto-friendly, international financial technology company. Its On-Demand Liquidity (ODL) is already present in more than 50 countries and runs on XRP Ledger. As a fully-fledged bank, Ripple would not have to use the antiquated SWIFT system, would not have to depend upon nostro/vostro accounts, and could be rid of the intercontinental transaction delays that occur in international money transfers.
XRP Supporters Remain Positive
Netizens believe that Ripple is not only a fintech company, but also is constructing a parallel financial empire, and the netizens believe in the sector. Experts say that this is why Wall Street banks are trying to “kill” Ripple, as they tried to end PayPal, Bitcoin, Coinbase, and stablecoins. However, in the past, Wall Street failed miserably in such efforts; hence, XRP supporters are optimistic about Ripple’s future.
The conflict points to the increasing deterioration between incumbent banks and block firm-native companies. Market participants noted that a comparable level of opposition was witnessed at the initial stages of Bitcoin, stablecoins, and crypto exchanges.
For now, it is up to the regulators in the U.S. A decision is left to them. In case Ripple’s banking license gets approval, it would be a turning point not only for the company but for the crypto-backed financial system as a whole.
