Ripple Applies for US Bank License as Congress Advances Stablecoin Regulation

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Ripple Seeks National Bank Charter Amid Push for Stablecoin Regulation

Ripple’s application for a national bank charter from the U.S. Office of the Comptroller of the Currency (OCC) marks a pivotal moment for the company and the wider crypto industry. This strategic decision follows the passage of the GENIUS Act, a bill that mandates federal oversight for major stablecoin issuers. 

According to Ripple CEO Brad Garlinghouse, if approved, the license will set a "new and unique benchmark for trust" in the stablecoin market, placing Ripple under both federal and state supervision. Notably, the company’s newly launched Ripple USD (RLUSD) stablecoin is already regulated by the New York Department of Financial Services.

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Ripple and Circle Lead the Way in Crypto Banking Ambitions

Just two days prior to Ripple’s announcement, Circle, the issuer of USDC, had applied to the OCC to form a national trust bank. These coordinated moves from two of the industry’s largest players show a growing trend: crypto firms are actively seeking legitimacy through regulatory frameworks. Jeremy Allaire, Circle’s CEO, emphasized the company’s proactive approach to align with emerging U.S. laws for dollar-backed stablecoin issuance. As of now, Anchorage Digital remains the only crypto firm holding a national bank charter, but that could soon change.

Ripple Applies for Federal Reserve Master Account to Secure RLUSD

In a further step toward integration with traditional finance, Ripple has also applied for a Master Account with the Federal Reserve. This would allow the company to hold RLUSD reserves directly with the Fed, providing an extra layer of security and trust for its stablecoin. Garlinghouse noted that "banks are now leaning in", a dramatic shift from the days of Operation Chokepoint 2.0, when the crypto industry was allegedly being cut off from the financial system. The application was submitted via Standard Custody, a crypto custodian Ripple acquired in early 2024.

This article was drafted using ChatGPT and edited by the author for final publication.

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