The U.S. cryptocurrency company Ripple is facing strong opposition from traditional financial sectors as it pursues the establishment of its own trust bank. The U.S. banking industry has raised objections, claiming "neutralization of the system that mimics deposit functions" in response to Ripple's move to establish a trust bank, citing the management of reserves for the RLUSD stablecoin.
According to Bitcoin.com on the 6th (local time), the Independent Community Bankers Association of America (ICBA), representing over 5,000 regional banks in the U.S., has submitted an official opposition to the Office of the Comptroller of the Currency (OCC) regarding the establishment of the 'Ripple National Trust Bank (RNTB)'.
The ICBA took issue with Ripple's intention to provide dollar redemption and payment functions through RLUSD. The association stated, "This is an attempt to replicate the core functions of a deposit institution" and "clearly exceeds the role of a trust bank." They further criticized, "RNTB seeks to replace deposit functions without a formal bank license" and accused the OCC of "essentially tolerating regulatory evasion by stablecoin issuers".
The association warned that if Ripple's trust bank establishment is permitted, it could undermine the overall financial system's stability and weaken consumer protection measures. They argued that if RNTB provides bank-like services based on stablecoins, it could negatively impact the existing banking system's credibility.
Meanwhile, despite these controversies, Ripple's cryptocurrency XRP continues to show an upward trend. As of 12:09 PM on the 6th according to CoinMarketCap, XRP is trading at $2.97, up 1.8% from the previous day.
