Ripple’s licensing footprint puts it ahead of a bill still moving through Congress. Crypto researcher SMQKE laid out the case on X, explaining that Ripple already satisfies the requirements the PACE Act would impose on any company seeking direct access to Federal Reserve payment rails.
The post connects XRP to a piece of legislation most people are still learning about, and the numbers behind the claim hold up.
XRP 🤝 PACE Act
Another avenue for XRP’s integration into Federal Payment Systems.👇 https://t.co/I165gDSLKs
— SMQKE (@SMQKEDQG) August 6, 2026
The License Requirement
The PACE Act sets a specific bar for companies that want to plug into Fedwire, FedNow, and FedACH without a bank charter. Applicants need money transmitter licenses from at least 40 states. SMQKE pointed out that Ripple clears that number by a wide margin.
The post states Ripple “holds over 50” licenses, including approval in New York and Texas. New York’s license carries particular weight in this industry. The state’s BitLicense regime is one of the toughest in the country, and firms that hold it typically clear licensing requirements everywhere else with less friction.
The bill also requires 1:1 reserves and compliance with the Bank Secrecy Act. Applicants must register as a “covered provider” with approval from the Office of the Comptroller of the Currency.
Ripple’s existing licensing structure was built for state-by-state and federal scrutiny, which is why SMQKE argues the company clears the threshold before the bill even passes.
ISO 20022 as the Connector
The second part of the argument centers on messaging standards. ISO 20022 is the global format banks use to move data-rich transactions between systems. SMQKE’s post claims this standard “allows direct interoperability between FedNow and XRPL.”
That’s a meaningful technical point. FedNow runs on ISO 20022. So does the XRP Ledger’s payment infrastructure. A shared standard removes one of the biggest obstacles to connecting two networks that were never designed to talk to each other.
Legacy bank cores often rely on flat files and rigid schemas that cut data short. An ISO 20022-native system avoids that problem and processes transactions around the clock instead of waiting on batch cycles. That matters for any network trying to keep pace with real-time rails like FedNow and RTP.
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Speed Requirements
FedNow settles payments in seconds, not days. SMQKE’s post argues that XRPL keeps pace with that speed, pointing to the ledger’s millisecond settlement times as proof that the network can handle the timing FedNow demands.
This is the practical test for any blockchain trying to integrate with federal payment infrastructure: the settlement speed has to match, not just approximate, what the Fed system already delivers.
Why the Timing Matters
The PACE Act has bipartisan sponsors and support from fintech and crypto trade groups, but it hasn’t passed. Companies that already meet its requirements are positioned to move quickly if it does. Whether that translates into an actual Fed rail connection still depends on OCC approval and the bill clearing Congress.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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