Analysis: Ripple's application for a Federal Reserve master account is more significant than applying for a national bank charter

ChainCatcher news, according to crypto journalist Eleanor Terrett's comments on "Ripple's application for a national bank charter submitted to the Office of the Comptroller of the Currency (OCC)", "In addition to this application, Ripple also applied for a Federal Reserve master account through its trust company Standard Custody, which it acquired last year. Obtaining a Federal Reserve master account is more significant in terms of access than obtaining an OCC license. In terms of hierarchy, the master account is diamond level, the bank charter is platinum level, the trust company is gold level, and the money transmission license is silver level."

"Historically, the Federal Reserve has resisted allowing cryptocurrency companies direct access to the payment system, although critics argue that this could reduce risk. The Federal Reserve is currently defending this position in the lawsuit involving Custodia Bank, which concerns the ability of deposit institutions to obtain master account access, with a ruling expected to come at any time."