Ripple National Trust Bank: What It Means for XRP Holders

Ripple’s move into the U.S. federal banking system has raised an important question for XRP holders: what does the approval of Ripple National Trust Bank actually mean for XRP?

Crypto enthusiast Tulips shared a video on X from BULLRUNNERS that examines the distinction between Ripple, the company, and XRP, while tracing the regulatory developments that brought the company from its 2020 SEC lawsuit to federal bank approval in 2026.

The video revisits Brad Garlinghouse’s comments from December 22, 2020, when he explained that XRP was separate from Ripple and described it as a currency trading in the marketplace. BULLRUNNERS uses that statement as the starting point for examining what changed during the following six years.

The TRUTH About Ripple National Trust Bank And XRP… XRP HOLDERS, Here’s What They Aren’t Telling You (NO ONE IS READY) pic.twitter.com/spHwR9kgLn

— Tulips (@alkhadji) October 28, 2026

From the SEC Lawsuit to Federal Bank Approval

The video recalls how the SEC sued Ripple in December 2020, alleging that the company had conducted an unregistered securities offering involving XRP. BULLRUNNERS also recounts how several exchanges suspended or halted XRP trading following the lawsuit, contributing to a sharp decline in the token’s price.

The video then moves to Judge Analisa Torres’ July 2023 ruling, which determined that XRP sales to retail buyers on exchanges did not constitute investment contracts under the circumstances presented. It also notes that Ripple’s institutional sales remained subject to the court’s findings.

BULLRUNNERS says both sides ultimately dropped their appeals in August 2025, leaving the $125,035,150 penalty in place and bringing the case to an end.

The video then shifts to Ripple’s banking strategy. In July 2025, Garlinghouse announced that Ripple had applied for a national bank charter from the Office of the Comptroller of the Currency (OCC), while its subsidiary Standard Custody pursued a Federal Reserve account.

What Ripple National Trust Bank Is Approved to Do

BULLRUNNERS places particular emphasis on the difference between conditional approval and final approval. The OCC initially granted Ripple conditional approval in December 2025, allowing the company to proceed with preparations before receiving final authorization.

According to the video, Ripple received final approval on October 26, 2026, shortly before the company’s Swell conference. The approval permits Ripple National Trust Bank to manage the segregated reserves backing RLUSD, act as collateral trustee for those reserves on behalf of RLUSD holders, and provide fiduciary digital asset custody services.

The video stresses that the approval does not authorize the bank to operate like a conventional commercial bank. It says the trust bank cannot accept deposits or issue loans, instead focusing on custody and fiduciary functions.

Where XRP Fits Into the Approval

The central point of the BULLRUNNERS video is that the OCC approval does not specifically mention XRP among the bank’s approved activities. The video notes that RLUSD appears directly in the approved activities, while XRP does not.

BULLRUNNERS therefore distinguishes Ripple’s new banking status from XRP’s regulatory position. It also references a March 2026 SEC and CFTC interpretation that, according to the video, classified XRP among 16 digital commodities.

The video notes that Ripple’s federal banking approval primarily strengthens the company’s role in regulated custody and stablecoin infrastructure rather than directly establishing a new regulatory benefit for XRP.

BULLRUNNERS nevertheless says the development could have implications for XRP if institutional customers eventually use Ripple National Trust Bank to custody XRP. However, the video stresses that the current approval does not guarantee that outcome.

The video closes by returning to Garlinghouse’s 2020 statement that XRP is “a separate thing altogether,” arguing that Ripple’s federal banking approval and XRP’s regulatory status should be viewed as two related but distinct developments.