On the heels of significant progress in its protracted legal battle, Ripple, the blockchain-based payments firm closely associated with the XRP cryptocurrency, confirmed it has filed an application with the U.S. Office of the Comptroller of the Currency (OCC) for a national banking license.
The license would allow Ripple to operate as a federally regulated custodian for its reserves, aligning with the current administration's crypto-friendly policies. This move follows similar applications by other major players like Circle, signaling a growing trend among stablecoin issuers seeking federal oversight amid advancing U.S. crypto legislation.
Ripple Aims to Establish a National Trust Bank
Ripple submitted its application to the OCC, as confirmed by CEO Brad Garlinghouse in a public statement.
"True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new benchmark for trust in the stablecoin market."
A national bank charter would enable Ripple to expand its cryptocurrency services across state lines under federal regulation. The company already oversees the RLUSD stablecoin, a $440 million dollar-pegged asset regulated by the New York Department of Financial Services (NYDFS).
Key Developments
- Ripple’s subsidiary, Standard Custody & Trust Company, applied for a Federal Reserve master account, allowing direct custody of RLUSD reserves with the U.S. central bank.
- Competitor Circle recently filed a similar application, joining Anchorage Digital as the only crypto firms pursuing federal bank charters.
- The push aligns with the GENIUS Act, pending stablecoin legislation emphasizing stricter regulatory compliance.
Market Impact and XRP Price Reaction
XRP traded at $2.26 at the time of reporting, marking a 4.2% daily gain. Analysts speculate that federal approval could further bolster investor confidence in Ripple’s ecosystem.
👉 Explore how federal banking licenses could reshape crypto adoption
FAQs
Why is Ripple applying for a national bank charter?
A federal charter would grant Ripple broader operational flexibility, enhanced regulatory trust, and the ability to custody its own reserves under U.S. banking laws.
How does this affect XRP’s price?
Regulatory clarity and institutional approval often drive positive market sentiment. XRP’s recent price surge reflects optimism around Ripple’s compliance efforts.
What’s next for Ripple?
If approved, Ripple may expand into additional crypto financial services, including lending and asset management, under federal oversight.
👉 Learn why stablecoin regulation matters for crypto’s future
Conclusion
Ripple’s bid for a national bank charter underscores its commitment to compliance and long-term growth within the U.S. financial system. As regulatory frameworks evolve, this move could set a precedent for other crypto firms seeking federal legitimacy.