Ripple Could Become a Federally Regulated US Trust Bank Within 12 Months - XRP's Institutional Path Clears

Crypto investor Kevin Cage posted an update on X that could be interesting for XRP and Ripple supporters.

Ripple received conditional approval for a national trust bank charter from the Office of the Comptroller of the Currency (OCC) back in December 2025. The OCC's final rule, which clarifies what trust banks can do (including digital asset custody) took effect in the beginning of this month.

That rule removes a key regulatory grey area. Trust banks now have clear federal guidelines for holding crypto assets.

If Ripple meets the pre-opening requirements, the charter goes live. Those requirements include standard banking conditions: anti-money laundering protocols, know-your-customer systems, capital reserves, and operational technology. The OCC does not hand out charters lightly. Ripple has been working on these conditions for months.

Kevin Cage estimates the launch could happen within the next 12 months. The charter expires around June 2027, giving Ripple an 18-month window from December 2025. That timeline indicates the OCC expects progress soon.

What a federal trust bank charter means for Ripple

A federally regulated trust bank sits inside the US banking system. That is a massive upgrade from Ripple's current status as a crypto technology company. With the charter, Ripple could offer custody, payments, and asset servicing under federal oversight. Banks and institutions would no longer see Ripple as an unregulated crypto player. They would see a federally supervised counterparty.

This would dramatically strengthen Ripple's credibility with banks, institutional investors, and even foreign governments. XRP, as the native asset of RippleNet, would benefit from that trust. More institutions would feel comfortable holding or transacting with XRP if a federal bank stands behind the infrastructure. The legal uncertainty from the SEC case is gone. The only remaining question is whether Ripple executes on the OCC's conditions.

To be clear - Ripple is not the only crypto firm chasing a national charter. But it is one of the furthest along. A successful approval would set a precedent. Other crypto companies – exchange custodians, stablecoin issuers, payment firms – would follow the same path. The OCC's final rule from April 1 signals that US regulators are opening the door, not closing it.

With the SEC lawsuit behind Ripple, the path is cleaner than ever. No legal cloud hangs over the charter application. That increases the odds of approval.

Read also: Blood in the Streets for XRP – Last Time This Happened, XRP Price Jumped 63%