XRP Price: Ripple’s Crucial Bid for a US National Banking License

Key Points

1. Ripple applied for a US national banking license, a significant strategic move, but the XRP price increased only by about 3% post-announcement.

2. The application does not immediately enhance XRP's utility or change its legal status, which remains under scrutiny by US regulators.

3. A national banking license would allow Ripple to offer digital asset custody and manage its stablecoin (RLUSD) under a regulated framework, increasing transparency and potential revenue.

4. Ripple still faces regulatory hurdles, including a 2023 court ruling that limits XRP's institutional demand in the US.

5. The long-term impact of the banking license could position Ripple as a regulated financial technology player, fostering broader institutional adoption of XRP.