Ripple has formally applied this week for a national banking license with the U.S. Office of the Comptroller of the Currency. The step is taken as the firm seeks to put its stablecoin, RLUSD, under federal regulatory supervision. Ripple also seeks to acquire a Federal Reserve master account via its subsidiary, Standard Custody & Trust.
Brad Garlinghouse, the CEO of Ripple, affirmed the news in a social media post. This move puts Ripple on par with other companies such as Circle, which started making moves to establish a national trust bank in the United States.
By venturing into the legacy banking sector, Ripple wants to establish more credibility and make it easier to access the U.S. financial infrastructure. The RLUSD stablecoin that Ripple launched in October of 2024 is U.S. dollar-pegged and collateralized with cash and Treasury securities.
RLUSD reserves are stored in safe financial instruments by Ripple to maintain a 1:1 swap ratio. Even though it is currently much smaller in size than market leader Tether and Circle’s USDC, RLUSD is a big player with a market capitalization of nearly $470 million to the numbers from CoinMarketCap.
Having a national charter will also allow Ripple to issue and redeem RLUSD during after-hours or weekends. A Federal Reserve master account application will further allow the company to hold stablecoin reserves with the very central bank itself.
GENIUS Act supports Ripple’s stablecoin regulatory path
These measures are set to raise the speed and efficiency of cross-border payments and eliminate the necessity for intermediary service providers.
Approval from the OCC and the Federal Reserve will help Ripple offer bank-like services. This will also help the company meet regulatory requirements quickly and expand its stablecoin business in a safer financial environment.
This piece of legislation is the result of the U.S. Senate recently passing the GENIUS Act, aimed at setting clearer guidelines for stablecoins.
Many in the digital space believe the new legislation will accelerate adoption while maintaining consumer protections. They also expect it to improve overall financial stability.
Ripple’s recent actions show the broader crypto industry is moving toward regulatory approval. This shift also reflects closer integration with the traditional banking system.
Federal agencies are currently reviewing Ripple’s application. Their decision will help shape the future of stablecoins in the United States.
