Ripple, to be directly connected to the Fed's payment network? The true meaning of Trump's executive order

▲ Ripple ©

An analysis suggests that Ripple's push to secure a Federal Reserve (Fed) master account has gained significant momentum following US President Donald Trump's executive order. For Ripple, which is pursuing an RLUSD stablecoin strategy, the possibility of direct access to the US payment infrastructure has reportedly increased.

According to cryptocurrency specialized media Bitcoinist on May 21 (local time), President Trump signed an executive order on the 19th titled 'Integrating Financial Technology Innovation into Regulatory Frameworks.' The order requests US financial regulators and the Federal Reserve (Fed) to examine the possibility of expanding access to payment systems for digital asset and fintech companies.

Notably, this order required a review within 120 days of whether to allow access to Federal Reserve Bank payment accounts and payment services for uninsured depository institutions and non-bank financial companies related to digital assets. The media reported that industry attention is focused on this measure, as it aligns with Ripple's strategy to directly hold RLUSD reserves in the Fed system.

Brad Garlinghouse, CEO of Ripple, stated last July that he had applied for a US national bank charter along with a Fed master account. Ripple is pursuing a strategy to increase stablecoin reliability and payment efficiency by directly connecting RLUSD reserves to central bank infrastructure. The US Office of the Comptroller of the Currency (OCC) has officially confirmed Ripple's bank charter application.

The media explained that Kraken Financial already secured a Fed master account in March of this year, becoming the first digital asset bank to do so. However, this account is in a limited form, allowing only Fedwire access and limited excess reserve storage, and does not include Fed emergency loans, FedNow, or Automated Clearing House (ACH) services. Currently, Ripple, Anchorage Digital, and Wise, among others, are also pursuing similar access rights.

While Trump's executive order did not directly grant Ripple a master account, the media evaluated it as highly significant because it officially elevated the question of whether cryptocurrency payment companies can directly access dollar payment infrastructure without going through existing bank intermediary structures into a policy agenda. At the time of writing, XRP (Ripple) was trading at $1.3647.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*