“Ripple's timing is strategic, aligning its application with the Senate's progress on the GENIUS Act, which will define stablecoin regulation. By bringing RLUSD, the XRP ledger, and its liquidity services under one banking entity, Ripple could effectively cut out traditional intermediaries like SWIFT and correspondent banks,” Azizov explained.

The payments and stablecoin firm Ripple Labs Inc. applied to become a national bank as a bevy of firms in the financial-technology and cryptocurrency space seek such approval under President Donald Trump’s looser regulatory regime.

Ripple has applied for a US banking license to boost the trust in its RLUSD stablecoin and deepen its ties in the traditional finance sector.