Ripple’s Next Chapter: Legal Clarity to Banking Ambitions and Stable coin Expansion

Fintech, Market News, Personal Finance |

Written by Haider Saleem
Journalist and Political Analyst | LinkedIn / X

After years of regulatory confrontation, Ripple Labs is now positioning itself at the heart of regulated finance.

Fresh off resolving a multi-year legal case with the U.S. Securities and Exchange Commission (SEC), Ripple has now applied for a national banking license. The company also continues to expand its RLUSD stable coin infrastructure and explore ETF inclusion – moves that could reshape its place in the global financial system.

This article unpacks Ripple’s next chapter – and what it could mean for investors seeking regulated exposure to blockchain finance:

  1. How Ripple’s legal case with the SEC was resolved and what it means for XRP
  2. Why Ripple is applying for a U.S. national banking license
  3. The role of RLUSD and Ripple’s partnership with OpenPayd
  4. XRP’s market performance and potential ETF developments
  5. The debate around XRP’s valuation compared to traditional payment giants like Visa

What is Ripple?

Ripple Labs is the company behind the following:

1.       XRP, a token designed to facilitate cross-border payments.

2.       It also runs RippleNet, a blockchain-based network for institutional money transfers

3.       It also launched RLUSD, a U.S. dollar-backed stablecoin, in October 2024.

1. Ripple vs. SEC: Legal Clarity at Last

In May 2025, Ripple settled its long-standing legal battle with the SEC, agreeing to pay $50 million – significantly less than the $2 billion initially sought by regulators. A federal court found that XRP was only a security when sold to institutional investors, not in secondary markets[^1].

The case’s resolution has cleared the way for Ripple’s strategic refocus, and many investors view it as a milestone moment for the crypto industry as a whole.

2. Ripple Applies for a U.S. Bank Charter

Ripple’s application for a national banking license at the Office of the Comptroller of the Currency (OCC)[^2] would, if approved, let it bypass traditional intermediaries and access the Federal Reserve’s payments system directly. This includes holding RLUSD reserves with the Fed and offering regulated services across U.S. states.

CEO Brad Garlinghouse confirmed the application and linked it to Ripple’s stablecoin goals — part of a wider push for compliance and legitimacy[^2]. The move mirrors a similar step by Circle, the issuer of USDC.

3. RLUSD and the OpenPayd Partnership

To support the RLUSD ecosystem, Ripple recently partnered with UK-based fintech OpenPayd[^3]. This enables businesses to mint and burn RLUSD directly – streamlining cross-border payments, treasury management, and U.S. dollar liquidity access. While RLUSD remains smaller than USDC or USDT, Ripple is positioning it as a compliance-first alternative designed for institutional use.Ripple Payments now processes over $70 billion annually across more than 90 countries[^3]. Jack McDonald, Ripple’s SVP of stablecoins, emphasized the importance of connecting “traditional infrastructure and digital assets” through compliant platforms.

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4. XRP Market Reactions and ETF Potential

XRP traded above $2.20 in early July, buoyed by Ripple’s bank license bid and broader ETF enthusiasm. Some analysts believe XRP could climb toward $10[^4], particularly with ongoing speculation around its role in central bank digital currency (CBDC) infrastructure.

In July 2025, the SEC approved the Grayscale Digital Large Cap ETF[^5], which includes XRP. FXEmpire also reported that BlackRock may consider an XRP-specific ETF[^6], pending clearer regulatory standards.

5. Ripple vs. Visa: A Valuation Gap?

Despite bullishness, some analysts question XRP’s valuation. As of July 2, its market cap was $133 billion – placing it among the world’s largest financial assets. Yet RippleNet processes around 1 million transactions daily[^7], or roughly 0.1% of Visa’s daily volume.Still, if Ripple’s integration with Fed systems and regulated stablecoin services take off, the value may catch up with the promise. As one analyst put it: XRP could “earn its massive market value over time” – but it’s not there yet.

Final Thought: From Lawsuits to Licenses

Ripple’s transformation – from SEC target to federal bank applicant – reflects broader shifts in the crypto industry.
As legal fog clears and regulatory standards emerge, companies like Ripple are adapting their blockchain foundations.
This hybrid approach may appeal to investors looking for compliant, infrastructure-focused crypto exposure.

Footnotes

  1. Nicola M. White, “SEC Seeks to Settle Legal Fight With Ripple Labs,” Bloomberg, May 8, 2025
  2. Reuters, “Ripple Applies for U.S. Bank Charter,” July 2, 2025
  3. CoinDesk, “Ripple Expands Stablecoin Infrastructure,” July 2, 2025
  4. CoinDesk, “XRP Traders Eye $10 on Banking Bid,” July 5, 2025
  5. Pintu News, “Ripple (XRP) July 2025 Prediction,” July 3, 2025
  6. FXEmpire, “SEC Appeal or ETF Launch?” July 6, 2025
  7. The Motley Fool via MSN, “Where Will XRP Be in 5 Years?” July 2025

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