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

According to crypto journalist Eleanor Terrett, Ripple's application for a national bank charter with the Office of the Comptroller of the Currency (OCC) has sparked discussions. In addition to this application, Ripple has also applied for a Federal Reserve master account through its acquisition of Standard Custody last year. Obtaining a Federal Reserve master account is more significant in terms of access permissions compared to obtaining an OCC license. In terms of hierarchy, a master account is diamond level, a bank charter is platinum level, a trust company is gold level, and a money transmission license is silver level.

Historically, the Federal Reserve has resisted allowing crypto companies direct access to payment systems, despite critics arguing that this could reduce risks. Currently, the Federal Reserve is defending this position in a lawsuit involving Custodia Bank, which concerns the authorization for depository institutions to obtain master accounts. A judgment in this case is expected imminently.

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