Remember When Banks Called Crypto 'Too Risky'? Ripple Is Now A Federally-Chartered Bank

Hey Lantern Community,

Something interesting happened last Friday.

For months, the American Bankers Association had tried to block Ripple from getting a banking charter.

Last week, they lost.

The U.S. Office of the Comptroller of the Currency granted Ripple conditional approval to operate Ripple National Trust Bank.

Today, we’ll go over just what happened last week and what it means for everyone.

But first, market update!

The seven-month lobbying war

July 2025: Multiple banking trade groups sent a joint letter to the OCC demanding they "pause or delay" Ripple's bank charter application.

Their argument? Crypto firms shouldn't get the same banking privileges as "real banks."

For months, the American Bankers Association, state banking associations, and even individual banks flooded the OCC with comment letters arguing that Ripple, Circle, and other crypto firms posed "safety and soundness concerns."

December 12, 2025: The OCC granted conditional approval not just to Ripple, but to five major crypto firms simultaneously:

• Ripple National Trust Bank

• Circle's "First National Digital Currency Bank"

• BitGo Bank & Trust (Lantern’s custodian)

• Paxos National Trust

• Fidelity Digital Assets

Why banks fought so hard to stop this

For years, traditional banks had a simple defense: "We'd love to compete in crypto, but the regulations won't let us."

Then crypto firms started saying: "Fine. Give us the same regulations you have."

That's when banks panicked. Why?

Because federally-chartered crypto banks that could move money faster, cheaper, and 24/7 while operating under the exact same federal oversight are simply better than the existing banks.

The banking lobby spent decades building regulatory moats around their business. Now crypto companies have finally infiltrated the castle.

And they’ve brought with them better technology.

What this means for crypto holders (and Lantern borrowers)

The infrastructure holding your collateral just became as regulated as traditional banking.

Ripple can now use its charter to offer regulated custody and settlement for institutions moving money across borders. That means the same XRP you're borrowing against is becoming core infrastructure for global payments with a federal banking charter behind it.

BitGo (where your XRP sits right now) just became the "custodian's custodian." Their new charter solidifies their role as the vault that other institutions trust with their crypto. When major funds, corporations, and even other banks need someone to hold their digital assets, they go to BitGo.

For Lantern borrowers, this validates everything we've been building:

• Institutional-grade custody (BitGo)

• Regulatory compliance (US-based, MSB registered)

• Conservative risk management

• Transparent operations

We built Lantern the way these firms are now building their national trust banks: regulatory-first, customer-aligned, built to last.

Questions about how regulatory changes affect your crypto-backed loan?

Text us: (415) 365-0100 or check your position: https://lantern.finance/borrow

The game just changed. But you were already playing it.

The Lantern Team

This newsletter is for educational purposes only and does not constitute financial advice. Always consult with your financial advisor before making lending decisions.