Former Senatorial candidate and pro-XRP lawyer John Deaton has commented on a recent report that revealed certain crypto firms are looking to apply for bank licenses. Deaton expressed surprise that Ripple wasn’t among these firms, considering the efforts the crypto firm has made so far to disrupt the financial landscape.
John Deaton Comments On Ripple’s Exclusion
In an X post, Deaton stated that he is surprised not to see Ripple on the list of crypto firms looking to apply for bank licenses. The pro-XRP lawyer was reacting to a Wall Street Journal (WSJ) report, which revealed that Coinbase, Circle, BitGo, and Paxos were looking to apply for bank licenses.
Deaton remarked that it was only a matter of time before crypto firms look to compete with traditional financial institutions and become the go-to for banking needs. According to the WSJ report, the top crypto exchange and these other crypto firms plan to apply for bank charters or licenses.
This bank charter would enable these firms to operate as a bank or any other type of financial institution, depending on the agreement between the regulator and these firms on what kind of services they can provide.
Deaton’s surprise likely relates to the fact that Ripple has so far made several efforts to establish itself in the financial space, especially through its payment services. Moreover, the crypto firm recently agreed to acquire prime broker Hidden Road for $1.25 billion, as part of its effort to expand its services.
However, the crypto firm could still make a similar move to apply for a bank license once it ends its ongoing legal battle against the US Securities and Exchange Commission. The court recently granted both parties’ joint motion to pause the XRP lawsuit while they finalize their settlement.
Hidden Road Acquires FINRA Approval
While Ripple may not be looking to apply for a bank license just yet, the crypto firm is still making other moves, especially through its latest acquisition. Hidden Road recently received approval from the Financial Industry Regulatory Authority (FINRA) to operate as a member broker-dealer.
The firm explained that the approval will enable it to expand its recently launched fixed income prime brokerage platform, which includes Fixed Income Repo and Global Funding services. As a broker-dealer, Hidden Road will also be able to provide its clients with several regulatory-compliant prime brokerage, clearing, and financing services in fixed-income assets.
It is worth mentioning that Ripple executive Cassie Craddock recently revealed that the XRP Ledger (XRPL) will begin to power Hidden Road’s post-trade infrastructure as part of the crypto firm’s acquisition of the prime broker.
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