A new banking charter has now been proposed for Ripple and digital finance which will revolutionize banking.
In a significant development for the cryptocurrency landscape, U.S. politician and former congressional candidate Greg Kidd has announced his initiative to introduce a groundbreaking bank charter aimed at facilitating banking licenses for digital-native firms like Ripple.
This bold step, revealed during the recent XRP Las Vegas conference, could reshape the financial sector by fostering innovation and enhancing competition.
The Vision Behind the New Bank Charter
Kidd, who co-founded Haka Yaka Ventures and currently owns Vast Bank, emphasized the need for a specialized banking framework that caters exclusively to companies involved in deposits and payments.
This new charter would eliminate the conventional requirements for physical branches and traditional lending practices, thereby streamlining the process for digital-first businesses to gain banking licenses.
The Need for Change
In an exclusive interview with journalist Eleanor Terrett, Kidd argued that the existing banking system is overly restrictive, limiting the entry of innovative companies.
He stated, “The cost of processing payments on the XRP Ledger is nearly zero, which means the cost of sending money should reflect that. Banking needs to evolve into a model that operates like a public utility—accessible and affordable for everyone.”
Kidd’s larger goal is to dismantle the entrenched dominance of traditional banks, making the financial landscape more inclusive for emerging players, including digital wallets, remittance services, and major retailers.
Ripple’s Position in the Evolving Banking Landscape
Ripple has already begun positioning itself as a key player in the banking sector.
In June 2024, the company became a Platinum Member of the American Bankers Association (ABA).
This membership not only enhances Ripple’s visibility but also provides access to influential banking leaders and policymakers, thereby increasing its potential impact on the future of financial services.
Ripple CEO Brad Garlinghouse, addressing attendees at the Las Vegas conference, reiterated the firm’s commitment to transforming the banking industry.
“We aim to help banks process transactions more efficiently and cost-effectively by cutting out intermediaries and eliminating the need for pre-funded accounts,” Garlinghouse explained.
Importantly, he stressed that Ripple does not seek to replace banks but rather to collaborate with them in making cross-border payments faster and simpler.
Kidd’s Broader Goals for Financial Innovation
Kidd’s initiative extends beyond Ripple.
He envisions a banking ecosystem where digital currencies and traditional financial systems coexist seamlessly.
By acquiring Vast Bank, Kidd aims to integrate real U.S. dollars directly onto blockchain networks, replacing outdated banking ledgers with secure, real-time records.
This innovation could make banking operations more transparent and efficient, operating continuously without interruptions.
International Expansion Plans
Kidd has also disclosed his intentions to invest in international banking ventures, including the Bank of London.
His strategy includes bringing various currencies—such as pounds and euros—onto blockchain platforms, enabling 24/7 banking with digital currencies that remain on-chain and are backed by regulatory protections.
Addressing Current Challenges in Banking
Kidd’s proposals come at a time when the banking sector faces increasing scrutiny regarding its operational practices and accessibility.
He criticized the current system, where only a select few individuals have managed to secure banking licenses under the current administration.
“We need to return to a competitive environment where innovation and inclusivity are at the forefront,” he stated.
Greg Kidd’s push for a new bank charter could be a turning point for Ripple and the broader cryptocurrency industry.
By enabling digital-first companies to operate as banks, this initiative could democratize access to financial services, fostering a more competitive and innovative banking environment.
Back to Daily Market News.
Follow Frank Nez on X and Facebook for more community insights.
Also on CoinMarketCap & CoinPedia.
Announcement: PR Newswire formally announces Frank Nez’s Journalist Verification on Muck Rack, solidifying our position in independent media.
About The Author
