Ripple, the payments technology firm behind the XRP Ledger, has assembled a substantial portfolio of state-level money transmitter licenses that positions the company ahead of pending U.S. regulatory proposals. The company holds licenses in more than 50 states, a figure that exceeds the baseline set by the Payment Access to Cryptocurrency Entities (PACE) Act for digital asset firms seeking direct access to Federal Reserve systems.

PACE Act Requirements and Ripple’s Compliance Position

The PACE Act aims to establish a regulatory pathway for cryptocurrency entities to connect directly to Federal Reserve payment rails, including Fedwire, FedNow, and FedACH, without first obtaining a traditional bank charter. Under the proposed legislation, applicants would need to secure money transmitter licenses in at least 40 states, maintain one-to-one reserves, comply with the Bank Secrecy Act, and register with the Office of the Comptroller of the Currency as a covered provider.

Ripple’s current licensing exceeds this threshold. The company holds approvals in more than 50 states and includes the New York BitLicense, widely viewed as one of the most rigorous state regimes for digital asset service providers. It also holds licensing in Texas. Crypto researcher SMQKE has noted that this extensive state coverage allows Ripple to meet or surpass the standards lawmakers are considering for firms seeking Federal Reserve connectivity.

The firm’s licensing strategy was structured to address both state and federal expectations, enabling a rapid response if the legislation advances.

Technical Alignment with Federal Systems

Beyond licensing, Ripple’s technology stack aligns with key technical requirements of modern Federal Reserve platforms. The company has adopted ISO 20022, the global messaging standard used for data-rich financial transactions. FedNow also operates on ISO 20022, creating a shared foundation that could reduce friction in any future interoperability between the XRP Ledger and Federal Reserve systems.

Traditional banking systems often rely on older data formats and batch processing cycles that limit transaction detail and introduce delays. An ISO 20022-native network can support continuous, rich data exchange and 24/7 processing, matching the operational model of instant payment platforms.

Settlement Speeds and Operational Readiness

FedNow is designed to settle payments within seconds. The XRP Ledger is capable of settling transactions in milliseconds, a performance level that meets or exceeds the speed requirements associated with Federal Reserve instant payment rails. This capability forms part of the broader operational profile that could support integration if regulatory pathways open.

Legislative Status and Next Steps

The PACE Act has drawn bipartisan interest and support from parts of the industry, yet it remains a bill under consideration in Congress. Final passage is not guaranteed, and any subsequent access to Federal Reserve systems would still require approval from the Office of the Comptroller of the Currency.

Companies that already satisfy the proposed licensing, compliance, and technical criteria would hold an operational advantage if the legislation is enacted. Ripple’s existing state licenses, ISO 20022 adoption, and settlement performance place it among the firms prepared for such a framework should it become law.