Oklahoma-based Old Glory Bank has outlined plans to add $XRP transactions and offer cryptocurrency-to-dollar conversions on its upcoming digital banking platform. However, the plans face significant setbacks following a failed merger and amid regulatory capital requirements.
Crypto integration plans and initial digital asset support
The bank aims to launch its Next Gen Banking platform in early 2027, after abandoning a planned merger that was expected to strengthen its capital position. Old Glory Bank plans to link customers’ cryptocurrency wallets directly to traditional bank accounts, allowing them to convert eligible digital assets into US dollars.
According to the bank’s official crypto FAQ, $XRP and Bitcoin will not be supported at launch but are planned for later. The platform will initially focus on Ethereum, Polygon, and PulseChain for digital asset services. No firm date has been set for when $XRP transactions will become available.
The bank’s broader strategy includes the “Freedom Offramp,” which will allow customers to send supported cryptocurrencies to a designated address. The assets will then be exchanged for dollars and deposited directly into users’ accounts.
Old Glory Bank has also announced plans for OGUSD, a dollar-backed stablecoin intended to simplify transfers between customer bank balances and blockchain networks.
Although users will be able to view digital wallet balances on the platform, that does not necessarily mean they will be able to exchange, withdraw, or transfer digital assets through the banking platform at launch.
Ripple rails, product timelines, and delayed rollout
Old Glory Bank said it is considering Ripple rails to process $XRP transactions, but no formal agreement with Ripple has been made public, and full operational status has not been confirmed. Institutional integration of $XRP payments may involve various technical arrangements, intermediaries, and settlement processes.
Mini dictionary: Ripple rails are a set of blockchain-based payment and settlement solutions provided by Ripple to facilitate real-time cross-border or domestic transactions using digital assets such as $XRP.
The initial 2026 launch target was linked to a proposed merger with Digital Asset Acquisition Corp., a special purpose acquisition company that would have allowed Old Glory Bank to raise funds and expand its digital asset initiatives.
An SEC filing dated August 13 said the two parties had mutually agreed to terminate the transaction. Old Glory Bank said on November 12 that the Federal Reserve had blocked the merger, citing its crypto plans as a potential reason. This is the bank’s account, however, and regulatory documents did not independently confirm that rationale.
In its November 12 statement, the bank attributed the collapse of the merger to “regulatory concerns related to our digital asset plans,” while emphasizing its intention to pursue alternative financing to support the platform launch targeted for the first quarter of 2027.
FDIC undercapitalization and regulatory impact
An FDIC filing from October said Old Glory Bank’s leverage capital ratio had fallen to 2.69% by June 30. The FDIC then classified the bank as significantly undercapitalized, triggering measures that restrict asset growth, capital distributions, and new business ventures.
The bank is currently working to stabilize its capital position and secure new financing before launching its digital banking platform.
The October filing noted stricter regulatory oversight, stating that restrictions would apply to “activities including asset growth and capital distributions” until the bank improved its leverage ratio above regulatory thresholds.
Efforts to integrate blockchain payments with traditional banking reflect a broader industry move to offer customers more seamless digital asset services. Ripple, a company specializing in cross-border blockchain-based settlements, has expanded its US banking infrastructure and launched institutional services that connect stablecoin issuance with established financial systems.
Previous pilot projects using the $XRP Ledger have demonstrated the technical feasibility of linking tokenized assets to conventional bank payments. However, banks’ adoption of these systems has not always led to a significant increase in demand for $XRP itself.
