Analysis: Ripple's Application for a Federal Reserve Master Account Is More Significant Than Applying for a National Bank Charter

According to ChainCatcher, crypto journalist Eleanor Terrett commented on "Ripple submitting a national bank license application to the US Office of the Comptroller of the Currency (OCC)," stating, "In addition to this application, Ripple has also applied for a Federal Reserve master account through Standard Custody, the trust company it acquired last year. Gaining access to a Federal Reserve master account is even more significant in terms of access rights than obtaining an OCC license. In terms of hierarchy, a master account is diamond level, a banking license is platinum level, a trust company is gold level, and a money transmitter license is silver level."

"Historically, the Federal Reserve has consistently resisted allowing cryptocurrency companies direct access to payment systems, despite critics arguing that this could reduce risk. Currently, the Fed is defending this stance in the lawsuit with Custodia Bank, which concerns whether depository institutions can obtain master account access. A ruling is expected at any time."