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Banks struggle to react as Ripple’s trust charter is conditionally approved

The news: Ripple has received conditional approval from the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. The company applied in July, joining several other crypto firms whose applications were approved at the end of the year.

Trendspotting: The trust charters would allow these companies to custody fiat and crypto assets based on a regulatory framework—but not provide deposit-taking and lending services. Crypto companies applied for and received national trust charters in a wave in 2025: Circle, BitGo, Fidelity Digital Assets, and Paxos have been granted conditional approval. Crypto.com, Bridge (owned by Stripe), and Coinbase have filed applications that are still pending.

What it’s worth watching: The banking industry has struggled to gain traction in its protracted fight with crypto firms during the Trump administration. The Independent Community Bankers of America hit back against Coinbase’s application for a national trust charter, arguing that the application had “serious deficiencies.” But the administration is poised to further favor crypto companies as they bridge traditional and decentralized finance.

Meanwhile, chaos ensued as Congress debated a crypto market structure bill. A loophole in the GENIUS Act enables nonbank stablecoin issuers to offer “interest” through affiliates, exchanges, or other partners. Some bank CEOs have argued that interest-bearing stablecoins are a danger to the safety and soundness of the banking system. Coinbase, which originally supported the bill, dropped support, suggesting it would disadvantage the crypto industry.

Implications for banks: The banking industry will continue fighting an uphill battle against the federal government’s blessing of crypto companies to conduct regulated financial services.

Trade groups and bank executives will rail against the perceived risks—which is justified post–crypto meltdown—while they fear the competitive threat. The most logical approach is to join the crypto industry while pushing for equal regulatory treatment.

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