Ripple's Licensing Strategy Exceeds PACE Act Requirements

Ripple, the payments technology company behind the XRP Ledger, has secured more than 50 money transmitter licenses across the United States.

This surpasses the requirements set out in the proposed Payment Access to Cryptocurrency Entities (PACE) Act, which aims to establish a regulatory framework enabling digital asset companies to connect directly to Federal Reserve payment rails.

Ripple's portfolio includes approval in New York and Texas, both of which maintain rigorous oversight standards. The company has adopted ISO 20022, the global banking messaging standard, which enables potential interoperability between the XRP Ledger and FedNow, the Federal Reserve's instant payment platform.

The PACE Act would require applicants to secure money transmitter licenses in at least 40 states, maintain one-to-one reserves, comply with the Bank Secrecy Act, and register as a covered provider with the Office of the Comptroller of the Currency. Ripple's existing licensing position means it already fulfills these compliance criteria.

The XRP Ledger is capable of millisecond-level transaction settlements, matching the real-time speed expectations of FedNow.