Ripple's Licensing Footprint Puts It Ahead in Federal Payment System Integration
Ripple's existing licensing structure and technical capabilities are giving it an edge in its bid to integrate XRP into federal payment systems.
The PACE Act, a bill moving through Congress, would require companies seeking direct access to Federal Reserve payment rails to hold money transmitter licenses from at least 40 states. Ripple already holds over 50 such licenses, including approval in New York and Texas.
In addition to meeting the licensing requirements, Ripple's use of ISO 20022 as a messaging standard allows for direct interoperability between FedNow and the XRP Ledger (XRPL), according to crypto researcher SMQKE. This shared standard removes one of the biggest obstacles to connecting two networks that were never designed to talk to each other.
Ripple's millisecond settlement times also keep pace with the speed requirements of FedNow, which settles payments in seconds.