Ripple May Secure a Banking License and Transform Into a Full-Fledged Bank

• Greg Kidd is drafting a digital-only bank license enabling Ripple to be a certified bank.
• Ripple is already aligned with major banking systems, and it strives to enhance cross-border payments.
• Ripple and the SEC submitted a settlement motion together, and attorney John Deaton stated there is a 70% chance of approval.

A former U.S. congressional candidate and an early investor in Ripple, Greg Kidd, has announced a new project intended to transform the conventional banking system. In a speech at the XRP Las Vegas 2025 conference, Kidd noted that he is working on a special kind of bank charter for digital-first companies. The proposal would assist companies like Ripple in accessing a banking license without having physical branches or lending businesses.

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During an interview with journalist Eleanor Terrett, Kidd pointed out that the suggested charter would confine itself to deposit-taking and payments. The framework is supposed to reduce the entry points of fintech companies, remittance services, and even large retailers that want to transact in the banking space. 

Although Kidd emphasized that he was not representing Ripple, the charter could offer a realistic entry point for blockchain companies and others into regulated banking. Kidd, the co-founder of Haka Yaka Ventures and the owner of Vast Bank, seeks to break the monopoly of the old-guard financial system. He said the new charter would permit greater competition and renew a system that runs on inclusion and innovation.

Digital Banking as a Public Utility

Kidd maintained that the cost to send money should be nearly free, and with blockchain-based transactions being quicker and cheaper, it will be. He highlighted that the XRP Ledger already enables payment processing with near-zero cost, and the high fees of the traditional financial system are a relic of the past that are not needed anymore.

He compared payment systems to public infrastructure, which should be available, cheap, and ubiquitous. Kidd blamed the lack of regulatory progress, saying that only a small number of individuals have been able to acquire banking licenses under the Biden administration, including himself and Jackie Reses of Lead Bank.

Ripple’s Growing Banking Ties and Broader Ambitions

Ripple has already made some moves to solidify its position in the banking industry. In the middle of 2024, the blockchain payments company was recognized as a Platinum Member of the American Bankers Association (ABA), getting strategic access to influential policymakers and financial leaders. The membership increases Ripple’s visibility and power in the conventional banking system.

At the same conference in Las Vegas, Ripple CEO Brad Garlinghouse reiterated the firm’s commitment to changing cross-border payments. According to him, Ripple is not looking to replace banks but rather collaborate with them by removing the intermediaries and the necessity of pre-funded accounts. Garlinghouse stated that the vision is to make money movement faster, cheaper, and more transparent.

This news comes as Attorney John E. Deaton, one of the most prominent members of the XRP legal community, has put the likelihood of Judge Analisa Torres accepting the settlement at 70%. Deaton said the proposal allows both parties to avoid protracted appeals and brings closure to the case, which is badly needed. 

If approved, the settlement would eliminate a significant burden on Ripple, freeing it to seek wider expansion into the financial world, such as by obtaining a banking license in the proposed framework by Kidd.