Cryptocurrencies have become crucial in payment services, with major companies like Visa, Mastercard, and PayPal already integrating crypto into their operations. The momentum is growing, spurred by support from the Federal Reserve (Fed). Ripple, in particular, is poised to benefit significantly from these developments.
Fed and Ripple's Evolving Relationship
Recently, it was reported that Ripple has applied to the Office of the Comptroller of the Currency (OCC) to operate like a bank, similar to Circle, the company behind USDC. Moreover, Coinbase has applied for a license. In a groundbreaking announcement at a payments and innovation conference, Fed member Waller revealed new plans to allow cryptocurrency innovation companies access to Fed’s payment systems.
A new limited access master account system, referred to as a ‘skinny master account,’ is being introduced. This system aims to provide legally eligible crypto initiatives, such as Ripple, direct access to Fed’s payment systems without needing to rely on banks.
“With this arrangement, they won’t have access to all services of a full master account, such as borrowing from the Fed. The key point is that every legally eligible entity can obtain this account without changing legal eligibility rules. Essentially, this new lite master account allows the Fed to give a green light to innovative banks, fintechs, stablecoin issuers, and other payment companies.” – Eleanor Terrett
Companies like Kraken, Ripple, and Anchorage have been working towards this goal. Now, with the Fed’s move, these companies can more freely offer crypto-based services.
XRP Coin Insights Amidst Developments
Ripple’s strengthened position in payments, alongside offering more regulated services and Fed recognition, spells great news for XRP Coin in the medium and long term. Currently, XRP Coin is trading just under $2.5, without significant movement due to Bitcoin’s price fluctuations.
Having rebounded from $2.26, XRP Coin has been attempting to reclaim $2.53 for two days. Success here is contingent on Bitcoin maintaining $110,500, potentially leading to targets of $2.65 and $2.77.