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🏛️ Ripple Applies For National Bank Charter
Why Ripple wants to be a bit (lot) like JP Morgan
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Ripple Applies For National Bank Charter
Ripple Labs Inc., a company known for its work with payments and stablecoins, has applied to become a national bank. This move comes as crypto firms rush to take advantage of the more relaxed regulations under President Donald Trump’s administration.
Still unknown to the broader public, Ripple’s already a very big deal. It’s modernizing global payments—specifically, making cross-border money transfers faster, cheaper, and more reliable using blockchain technology.
Ripple’s privately owned. So investors can’t directly benefit from its success. However, you can get indirect exposure through COIN. Coinbase is a key exchange venue for XRP in the U.S., and with crytpo’s relentless move into the mainstream COIN’s share price has more than doubled over the past three months.
Our Takeaway
By getting a banking charter, Ripple stands to gain major economic benefits that could reshape its position in the financial system and the financial system itself.
With no need to rely on correspondent banks or partner liquidity providers, Ripple can capture more value from each transaction. Ripple could custody assets, issue loans, and potentially offer deposit-like products—expanding its revenue streams beyond just payment processing.
In a metaphorical blink of an eye, Ripple could move from being a tech partner to JPM, WFC or C to a direct competitor in areas like payments, settlement, and even digital banking.
In short, beyond legitimizing Ripple, the bank charter could arm it to disrupt banking and finance more deeply than many pundits initially anticipated. How deep its roots will go into the financial system will depend on how quickly banks adapt, and of course, on regulation.
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Market Overview
Markets were up on Wednesday - with the exception of the DOW which was flat. Traders viewed disappointing U.S. jobs data as potentially favorable for a rate cut. The news flow on the trade front was mostly positive as a deal was struck with Vietnam.
The S&P 500 is up by 12.5% over the past year.
U.S. equity futures are flat this morning, as investors get ready for a well-deserved long weekend.
Still, investors will keep a keen eye on any trade-related news, as the July 9 deadline looms.
Headlines You Can't Miss
House Republicans clear critical hurdle in Trump tax bill debate.
Microsoft is laying off 9,000 workers in its second mass layoff in months.
US stocks are within 1.2% of their most expensive level in the past 20 years when measured by the long-term Shiller CAPE ratio.
US tariff deal with Vietnam set to expand trade but faces hurdles
Former OpenAI Board Member questions Zuckerberg AI hiring spree.
Hedge funds brave market gyrations to deliver positive half-year returns.
Trending Stocks
Earnings
National Beverage (FIZZ): National Beverage reported fiscal 2025 Q4 earnings on July 2, showing a 5.5% revenue increase to $313.63 million. Results met expectations without major surprises. Looking ahead, the company targets over $1.25 billion in revenue and about $2.10 EPS for the next fiscal year.
CEO Quote🎤: “We are very pleased to report strong fourth-quarter results, with net sales, operating profit, and net income reaching record highs”
What’s Next?
Well, first of all, a long and lovely July 4th weekend.
But, there’s still a jobs report this morning. It’s expected to show a continued slowdown in US hiring. The unemployment rate for June is expected to come in at 4.3%, its highest level since October 2021 though still relatively low by historic standards.
Q2 earnings season kicks off next week with DAL, CAG, LEVI and VIST reporting, along with dozens of others.
Over 110 S&P 500 companies issued Q2 guidance, with 51 positive vs. 59 negative.
The estimated Q2 earnings growth of 5% could mark the lowest since Q4 2023
Track upcoming news and earnings on your portfolio companies with Ziggma.
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