Ripple Labs, a leading blockchain-based payment firm, has officially applied for a U.S. national banking license, signaling its growing ambition to become a regulated financial institution and strengthen trust in its stablecoin operations.
Ripple Seeks Approval from US Banking Regulator
Ripple CEO Brad Garlinghouse confirmed the move on social platform X, revealing that the company is pursuing a national bank charter from the Office of the Comptroller of the Currency (OCC). The goal, he stated, is to align Ripple’s operations with the emerging U.S. regulatory framework for stablecoin issuers.
“Ripple is applying for a national bank charter from the OCC,” Garlinghouse posted.
“This would establish a new benchmark for trust in the stablecoin market.”
If approved, the charter would bring Ripple under direct federal and state oversight, enhancing the credibility of its stablecoin Ripple USD (RLUSD), which is already regulated by the New York Department of Financial Services.
Ripple Follows Circle in Banking Ambitions
Ripple’s move follows a similar step by Circle Internet Financial, issuer of USDC, the second-largest stablecoin by market cap. Earlier this week, Circle applied for a national trust bank charter from the OCC to supervise its stablecoin reserves.
These strategic applications come as the U.S. Senate advances the GENIUS Act, a proposed law that outlines strict requirements for dollar-backed stablecoin issuers, including mandatory oversight by the OCC for large firms.
“Crypto companies are taking proactive steps to align with clear federal regulation,” said Circle CEO Jeremy Allaire.
Bid for Federal Reserve Access
In a parallel move, Ripple has also applied for a Master Account with the Federal Reserve, which would grant it direct access to the U.S. central banking system.
“This would allow us to hold RLUSD reserves directly with the Fed,” said Garlinghouse, adding that it provides an “additional layer of security” for users of Ripple’s stablecoin.
Ripple submitted the application through Standard Custody, a crypto custody firm it acquired in early 2024.
XRP Price Rallies After Announcement
Following the news, XRP, the native token of Ripple’s network, jumped over 3% to trade at $2.24, briefly peaking at $2.27 before stabilizing.
Key Takeaways:
- Ripple applies for a national bank charter with the OCC, aiming to become a regulated entity.
- It follows Circle’s similar application, as both firms prepare for stablecoin regulation under the GENIUS Act.
- Ripple is also seeking a Fed Master Account to directly manage RLUSD reserves.
- XRP gains 3.2%, fueled by investor optimism around regulatory clarity and institutional integration.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.