Ripple and Walmart Explore Banking Charters Amid Crypto Regulatory Shifts

• Trust charters allow asset holding without deposits, enabling crypto companies to provide regulated fiduciary services.

• Twelve applications filed this year mark the highest in eight years, including from Sony Bank tied to the tech giant.

• Regulators like the OCC signal openness to crypto within banking, but banking lobbies warn of risks to financial stability, citing post-2008 safeguards.

Discover how crypto firms and retailers like Walmart are pushing for bank charters amid regulatory changes. Explore stablecoin roles and industry tensions in this 2025 update—stay informed on fintech evolution today.

What are crypto companies doing to secure bank charters in 2025?

Crypto companies such as Ripple, Coinbase, and Wise are actively filing national trust charter applications to gain entry into the regulated banking system. This push comes after President Trump’s administration has signaled greater openness to new financial players, aiming to integrate cryptocurrency activities within established frameworks. These charters would allow firms to offer fiduciary services like asset custody without handling deposits or loans, addressing long-standing barriers that previously excluded the industry.

The move represents a strategic effort by crypto firms to legitimize their operations and compete directly with traditional banks. By securing such charters, these companies can provide secure, regulated services for digital assets, potentially reshaping the financial landscape. This development follows years of exclusion, where banks often distanced themselves from crypto due to regulatory uncertainties and perceived risks.

How are stablecoins influencing the race for banking charters?

Stablecoins are at the heart of this regulatory scramble, as they offer a stable digital currency pegged to fiat values like the U.S. dollar, making them ideal for payments and crypto transactions. Crypto firms seek charters to issue and manage these assets compliantly, providing customers with reliable partners in a volatile market. According to reports from The Wall Street Journal, this interest has surged with twelve trust charter applications this year—the most in at least eight years—highlighting the urgency driven by stablecoin potential.

Retailers like Walmart and Amazon are also eyeing stablecoin issuance to develop in-house payment systems, which could bypass traditional banks and credit card networks entirely. This prospect alarms established financial institutions, who fear loss of market share. The GENIUS Act, signed by President Trump, assigns the Office of the Comptroller of the Currency (OCC) to oversee stablecoin issuers, requiring them to operate as financial entities without mandating full bank charters. However, this has prompted partnerships and innovative structures to meet compliance needs.

Expert insights underscore the stakes. Ripple CEO Brad Garlinghouse, reflecting on past industry challenges, noted in prior statements that banks had effectively pushed crypto out, but now the tide is turning with administrative support. OCC Comptroller Jonathan Gould emphasized at a recent Treasury conference his desire for crypto activities to occur “within the banking system,” provided safety measures are in place. These comments illustrate a balanced regulatory approach, prioritizing innovation alongside consumer protection.

Banking advocacy groups, such as the Bank Policy Institute (BPI) and the Independent Community Bankers of America, have voiced strong opposition. In letters to the OCC, they urged rejection of applications from Ripple, Wise, and Sony Bank, arguing that lighter oversight on trust charters could introduce systemic risks. The BPI specifically highlighted Coinbase’s bid as potentially harmful to U.S. financial stability. Coinbase’s Chief Policy Officer Faryar Shirzad countered that such resistance stems from traditional banks protecting their dominance rather than genuine safety concerns.

Historical context adds depth: Post-2008 financial crisis regulations tightened entry for new banks to prevent reckless behavior, a policy now under scrutiny. The Federal Deposit Insurance Corporation (FDIC) plans to review industrial loan charters this year, which could ease access for non-bank firms like those in crypto and retail. This review might draw parallels to how companies like Toyota have used such charters for financing, potentially opening doors wider for stablecoin and crypto integration.

Debanking incidents have further fueled the drive for independence. Crypto firms report account closures influenced by political pressures, prompting Trump’s executive order to curb such practices. This has empowered applicants to argue for equal footing in the financial arena, ensuring they can serve unbanked or crypto-focused customers without reliance on reluctant intermediaries.

Frequently Asked Questions

What advantages do trust charters offer to crypto companies seeking banking status?

Trust charters enable crypto firms to hold and safeguard client assets while charging fees for custodial services, without the complexities of deposit-taking or lending. This structure provides regulatory legitimacy, reduces debanking risks, and supports stablecoin issuance, allowing companies like Ripple and Coinbase to build trust with users in about 45 words of focused compliance.

Why are retailers like Walmart interested in crypto and stablecoin initiatives?

Retailers such as Walmart and Amazon see stablecoins as a way to create efficient, low-cost payment systems that integrate seamlessly with their platforms. This could streamline transactions for customers, cut out middlemen like banks and card issuers, and offer innovative financial services directly to shoppers in a natural, accessible manner.

Key Takeaways

• Regulatory Shift: President Trump’s policies and the GENIUS Act are paving the way for crypto integration into banking, with the OCC leading oversight for stablecoins.
• Application Surge: Twelve trust charter filings this year, including from Ripple, Coinbase, Wise, and Sony Bank, signal a competitive rush to establish regulated footholds.
• Industry Tensions: Traditional banks lobby against these moves citing risks, but crypto advocates push for innovation—monitor OCC decisions for potential partnerships or approvals.

Conclusion

The push by crypto companies and retailers like Walmart for bank charters and stablecoin capabilities marks a pivotal moment in financial evolution, blending digital innovation with traditional oversight. As regulators balance openness with safeguards, this trend could democratize access to banking services while challenging incumbents. Industry watchers should anticipate further developments from the OCC and FDIC, positioning 2025 as a year of transformative opportunities in fintech—consider how these changes might impact your financial strategy moving forward.