The Ripple Foundation previously applied for a charter banking license and is moving closer to clinching the title. The Office of the Comptroller of the Currency (OCC) granted conditional approval for Ripple to secure a national trust bank charter. The fintech firm passed the first rigorous test, making it the first blockchain firm to enter the list. XRP will be the first to benefit if Ripple bags the banking license approved by the OCC.

The tentative approval by the OCC highlights that blockchain technology can further power up the traditional financial system. Ripple is penetrating the banking sector by providing solutions using blockchain tech, a ledger that can never be tampered with. This makes it lucrative, as banks are eager to curb financial fraud. The banking license could make Ripple a mainstream company and push XRP higher in value.

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Ripple Receives Preliminary Approval From the OCC: Charter Banking License to Follow?

Apart from Ripple, the OCC has also approved crypto-related businesses such as Circle, BitGo, Fidelity Digital Assets, and Paxos. However, a few banking groups remain unhappy with the OCC’s preliminary approval, calling it a backdoor entry. “The decision by the OCC to grant conditionally five national trust charters leaves substantial unanswered questions,” said Greg Baer, president and CEO of the Bank Policy Institute.

Baer also argued whether OCC tailored the requirements for Ripple to match the criteria. “Chiefly, whether the requirements the OCC has outlined for the applicants are appropriately tailored to the activities and risks in which the trust will engage,” he said. Moreover, despite the OCC’s preliminary approval, Ripple must still satisfy capital, risk, and governance standards to fully obtain the charter banking license.

Ripple is now one step closer to bagging the charter banking license that could change its fortunes. An IPO is also in the making and could be the solution the financial world needs. XRP is the asset to watch out for as it’s now trading below the $2 mark. An investment now at $1.90 could deliver good returns if the OCC approves the license.