42 Banks Tried to Block Ripple’s Bank License. Here’s Why Wall Street Is Scared of XRP

Key Points

1. Ripple applied for a U.S. national bank charter and a Federal Reserve master account in July 2025, which would grant it direct access to FedWire and allow it to issue the RLUSD stablecoin.

2. A group of 42 banks, through the BPI, opposed Ripple's applications, citing concerns over regulatory compliance and systemic risks.

3. Diana argued that the banks' opposition stemmed from Ripple's potential to disrupt traditional banking tools like SWIFT, Nostro/Vostro accounts, and high remittance fees with XRP's fast, low-cost transactions.

4. Ripple's strategy includes leveraging XRP for global liquidity and integrating RLUSD, positioning itself as a crypto-native alternative to traditional banking infrastructure.

5. Diana compared the banks' resistance to Ripple with past opposition to disruptive financial innovations, suggesting Ripple's technology could render legacy systems obsolete.