Bankers Try to Pause Ripple National Trust Bank

In a move that suggests rising concern — their “this is really happening” moment — the American Bankers Association (ABA) has sent a letter to the Office of the Comptroller of the Currency (OCC), urging regional directors to pause consideration of several recent banking licence applications.

Among the applicants?

• National Digital Trust Co.
• Fidelity Digital Assets, N.A.
• First National Digital Currency Bank, N.A.
• And most notably, Ripple National Trust Bank.

The ABA raised two primary objections:

1. The public portions of these applications don’t permit meaningful scrutiny.
2. Broader changes to OCC policy regarding trust activities require public input and transparency.

With regard to Ripple’s application specifically, the ABA claims it lacks sufficient detail, citing a statement that the proposed bank will:

“conduct activities that complement Ripple’s stablecoin and other payments businesses, including management of stablecoin reserves and related fiduciary services.”

Let’s clarify something: this is blockchain. Activities are immutable and transparent by design. Minting RLUSD on XRPL or Ethereum is visible, verifiable, and auditable by anyone. There’s no ambiguity.

To break it down:

Ripple’s RLUSD stablecoin has already passed its first audit under New York Department of Financial Services (NYDFS) standards, confirming full backing by U.S. dollar reserves and Treasury bills.

San Francisco-based BPM — one of the 35 largest accounting firms in the U.S. — conducted the audit, confirming the accuracy of RLUSD’s circulating supply and corresponding reserves.

Standard Custody and Trust Company, a Ripple subsidiary licensed by the NYDFS, has also published a proof-of-reserves balance sheet. Crucially, Ripple has appointed BNY Mellon as custodian of RLUSD.

It’s worth underscoring who BNY Mellon is:
A foundational pillar of global finance, dating back to 1792 and the first publicly traded company on the NYSE. As of late 2024, BNY reported $52.1 trillion in assets under custody or administration, and $2.0 trillion in assets under management.

In short — RLUSD is in safe hands.

So, how can the ABA reasonably challenge the legitimacy, audit trail, or custodianship of RLUSD and its underlying reserves? Simple. This isn’t really about transparency. It’s about protecting their turf. RLUSD and the XRPL are shaping into core infrastructure for a digital financial system. The Trump administration appears to recognise this — and regulated USD stablecoins like RLUSD may soon serve as efficient vehicles to absorb issued Treasuries.

And no — it won’t matter how loudly anti-crypto voices in Washington protest. The SEC lawsuit was a tool of choice. It didn’t work. Now the ABA is being sent in to stall the inevitable.

One irony? Ripple is a Platinum Member of the ABA.

The reality remains; with its transparency, licensing, trust charter, established audit framework, reputable custody partners, and alignment with a more crypto-forward administration, Ripple — and by extension RLUSD and XRPL — is poised to reshape financial infrastructure.

And at the heart of XRPL?
XRP — the engine oil of this new system