Ripple Could Gain Access to U.S. Banking System as OCC Expands Trust Bank Services

The U.S. Office of the Comptroller of the Currency (OCC) has expanded the services that firms can provide under a national trust charter, potentially giving them access to the financial system. This provides a boost for Ripple and other crypto firms that are on their way to becoming national trust banks.

Ripple Gets Boost as OCC Clarifies Trust Banks Can Handle Non-Fiduciary Activities

In a release, the OCC announced that it is amending its rule on the chartering of national banks to allow them to engage in non-fiduciary activities in addition to their fiduciary activities. This final rule effectively clears any doubts that national trust banks can engage in non-fiduciary activities.

This marks a major win for the crypto industry, which had actively pushed for this final rule. It is also a welcome development for crypto firms like Ripple, Circle, Paxos, and Crypto.com, which have received conditional approval for a national trust bank charter.

With this final rule, these firms could gain access to the U.S. banking system, a move that would further integrate crypto into traditional finance (TradFi). Notably, non-fiduciary activities include non-fiduciary custody operations, which are treated as incidental banking activities rather than trust duties. Basically, these firms will be able to hold and administer clients’ assets, such as securities and crypto assets, without acting as a fiduciary.

For Ripple, this provides an opportunity to expand its custody services and gain greater adoption. As Coingape reported, Ripple recently expanded its custody services to include Ethereum and Solana staking services through its partnership with Figment.

Fed Still Working On Skinny Master Accounts

This development comes as the Fed continues to work on the skinny master accounts, which would give firms like Ripple and Circle limited access to the Fed’s payment rails. Fed Governor Chris Waller, who has proposed this initiative, stated that he hopes to release the rules in the fourth quarter of this year.

However, as CoinGape reported, the crypto and banking industry are clashing over this initiative, with the latter arguing that the crypto industry shouldn’t gain access to the Fed’s payment rails. The Colorado Bankers Association also warned the accounts could “open up a window for expedited fraud.”

Amid this clash, the Fed has signaled that it plans to embrace crypto. In a speech delivered before the Senate Banking Committee yesterday, Fed Governor Michelle Bowman revealed that they are working with other banking regulators to develop regulations that include capital and liquidity for stablecoin issuers as required by the GENIUS Act.

She added that they will provide clarity regarding the treatment of digital assets to ensure that the banking system is well placed to support crypto activities. “This includes clarity on the permissibility of activities and willingness to provide regulatory feedback on proposed new use cases,” Bowman said.