Ripple Labs is pushing for banking licenses and has applied to US regulators for a National bank charter. For the uninitiated, a National bank charter is a license provided by the Federal government allowing financial institutions to operate as a bank. It is overseen by the Office of the Comptroller of the Currency (OCC), allowing financial institutions to accept deposits and disburse loans. If US regulators grant access to Ripple, it would build credibility and enter the Main Street of the financial sector. The development would also make Ripple’s XRP bullish, as gaining access to a National bank charter would boost its prospects.
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Here’s The Bullish Take For Ripple (XRP)
While other cryptocurrencies run on hype, Ripple’s XRP has the potential to play a role in the changing financial landscape. Leading financial institutions have already invested in XRP, citing its fintech capabilities that can shape the economic sector. The Bank of America, Standard Chartered, and Japan’s SBI Holdings already use Ripple services for payment transactions. Though they are used in less than 10% of the overall transactions, it’s still a big number considering the penetration. If many more banks follow through, Ripple’s XRP could have a bullish thesis for the coming years.
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The financial world is vast and is only entering the blockchain industry post-2020. While the traditional forms of payments still rule, the new tech is gaining a market share as the blockchain ledger cannot be tampered with. The transactions are also seamless, with lower fees, making it a lucrative option for use as a software-as-a-service (SaaS) solution. Ripple still has a long way to go in gaining global acceptance, but when it does, XRP will be the first to turn bullish. Taking an entry position in XRP now and waiting for a decade or more could do wonders for investors’ portfolios.
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