Why do crypto companies want their own banks?

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Crypto companies want their own banks

What Ripple's new trust bank will actually do

Ripple announced on October 26 that the U.S. Office of the Comptroller of the Currency (OCC) had granted final approval for Ripple National Trust Bank, following conditional approval in December 2025. The new institution will operate under federal supervision.

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The bank will help manage reserves backing Ripple USD (RLUSD), the company's dollar-pegged stablecoin, and safeguard digital assets for institutional clients. It will also serve as a trustee for RLUSD holders. According to Ripple, the stablecoin has reached a market capitalization of approximately $2.5 billion.

However, Ripple is not opening a conventional retail bank. Unlike commercial banks, national trust banks generally do not offer everyday services such as checking accounts or loans. Ripple's New York-regulated subsidiary, Standard Custody & Trust Company, will continue issuing RLUSD.

Why crypto companies want banking licenses

Banks, payment companies, and investment firms increasingly need regulated ways to hold digital assets and use stablecoins. For crypto companies, a banking charter can make it easier to attract these clients and expand their services.

Another motivation is greater control over financial operations. Crypto businesses often rely on traditional banks to hold cash, process payments, and access financial infrastructure. This dependence can become a problem when banking partners restrict services or stop working with cryptocurrency companies. Having their own regulated institution can give crypto firms more flexibility, although they may still need external banking partners.

Stablecoins are particularly important. Tokens such as RLUSD and USDC are designed to maintain a stable value against the U.S. dollar, so their issuers must carefully manage the reserves backing them. A trust bank can provide a regulated structure for overseeing those reserves, which may appeal to institutional customers.

Custody offers another opportunity. Investment funds and corporations may want to hold cryptocurrencies without managing private keys or digital wallets themselves. A regulated trust bank can safeguard assets on their behalf, allowing crypto companies to compete for business traditionally handled by financial custodians.

However, banking status comes with additional obligations, including regulatory examinations, compliance costs, and restrictions on permitted activities. A trust bank charter also does not automatically provide direct access to Federal Reserve payment systems or the full range of services available to commercial banks.

Ripple isn't the only company making the move

Ripple is part of a wider shift among cryptocurrency businesses. In July 2026, Circle, the company behind the USDC stablecoin, received final OCC approval to establish Circle National Trust. Like Ripple, Circle wants to bring more of its stablecoin operations under federal supervision. Its new bank will initially focus on digital asset custody, with USDC reserve management planned for the future.

Other companies are following similar paths. Coinbase received conditional approval for a national trust bank in April, while Crypto.com and Stripe-owned stablecoin company Bridge have also secured conditional approvals. Their plans differ, but all are seeking a larger role in regulated financial services. Unlike final approval, conditional approval does not yet authorize full operations.

Some businesses are taking a different approach. On October 14, Payward, the parent company of cryptocurrency exchange Kraken, announced an agreement to acquire Lithuania's Saldo Bank. Unlike a trust bank, Saldo already offers traditional banking products, including deposits and loans. The deal, expected to close in 2027 subject to regulatory approval, could help Payward expand into lending, cards, and other services across Europe.

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Could crypto companies compete with traditional banks?

For traditional banks, the expansion of crypto companies into regulated finance creates both opportunities and competition. Banks can partner with crypto firms to offer digital asset custody, blockchain payments, and stablecoin services. At the same time, they may face new competitors for corporate customers.

Payments are one area where competition could grow. Stablecoins can move across blockchain networks without following every step of a conventional international bank transfer, potentially offering faster settlement. However, converting stablecoins into local currencies often still requires banking partners, and transaction costs depend on the services involved.

Traditional banks also have advantages that are difficult to replicate. They have established customer bases, provide lending and other financial services, and offer deposit insurance on eligible accounts.

Getting a banking license is only the beginning. Crypto companies still need to prove that their services can compete with those of established financial institutions. Whether they succeed will depend on what they can offer customers, from faster payments and lower costs to easier access to digital assets.

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