Ripple Applies For U.S. Banking License

Key Takeaways

• Ripple has officially applied for a U.S. national bank license with the OCC, following Circle’s similar move earlier in the week.
• The firm also applied for a Federal Reserve Master Account, signaling its intent to become a key player in regulated finance.
• Ripple’s stablecoin, RLUSD, would benefit from federal and state oversight if the license is granted.
• The move comes after the U.S. Senate passed the GENIUS Act, which outlines standards for stablecoin regulation.
• XRP gained over 3%, showing positive market sentiment toward Ripple’s efforts to strengthen its regulatory footing.

Ripple Follows Circle’s Footsteps

This announcement places Ripple in direct alignment with Circle Internet Financial, the issuer of the USDC stablecoin, which filed a similar application just days earlier.

Source: X (@bgarlinghouse)

The update comes as Congress advances stablecoin legislation, underscoring the crypto industry’s increasing efforts to legitimize operations and build trust among regulators, investors, and the public.

A New Chapter for Crypto-Finance

Application Filed With The OCC

Ripple CEO Brad Garlinghouse confirmed in a post on X that the company has applied for a banking license from the Office of the Comptroller of the Currency (OCC).

He wrote:

“True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC.”

This move signals Ripple’s intention to solidify its standing in the U.S. financial ecosystem by becoming a federally regulated financial institution.

Federal & State Oversight On The Horizon

If approved, Ripple’s status would bring the firm under dual oversight, federal regulation via the OCC and state-level oversight from the New York Department of Financial Services (NYDFS), which already oversees Ripple’s new stablecoin Ripple USD (RLUSD).

Garlinghouse noted that obtaining this charter would serve as a “unique benchmark for trust” in the stablecoin industry.

Crypto Firms Turn Toward National Charters

Circle Leads, Ripple Follows

Ripple’s decision closely follows Circle’s own application for a national trust bank, a step Circle says is part of its “proactive” efforts to meet the standards of U.S. regulation for stablecoin issuers.

Source: X (@jerallaire)

The timing coincides with the U.S. Senate’s passage of the GENIUS Act, a proposed framework that would place large-scale stablecoin issuers under OCC regulation. As regulatory clarity begins to emerge, the leading stablecoin companies are racing to comply.

At present, Anchorage Digital remains the only crypto firm with an approved national bank charter in the U.S.

What Is A Master Account

In addition to the OCC license, Ripple has also applied for a Master Account with the Federal Reserve, a step that would grant it direct access to the U.S. central banking system.

Garlinghouse emphasized the significance of this move:

“This access would allow us to hold $RLUSD reserves directly with the Fed and provide an additional layer of security to future-proof trust in RLUSD.”

This application was submitted via Standard Custody, a crypto custody platform that Ripple acquired in February 2024.

XRP Crypto News

Following the banking application news, XRP experienced a modest rally. According to CoinGecko, XRP rose 3.2% in value, reaching $2.24 after peaking at $2.27 shortly following Garlinghouse’s public statement.

The token’s momentum aligns with broader investor optimism surrounding Ripple’s push toward federal compliance.

FAQ

Why is Ripple applying for a banking license?

Ripple is seeking a national bank charter to solidify its regulatory position and increase trust in its Ripple USD (RLUSD) stablecoin by becoming a federally regulated institution.

What is the GENIUS Act?

The GENIUS Act is a proposed bill in the U.S. Senate that establishes a legal framework for stablecoin issuers. It mandates federal oversight, particularly from the OCC, for larger operators.

What is a Federal Reserve Master Account?

A Master Account allows financial institutions to interact directly with the Federal Reserve, including holding reserves and accessing payment systems. This would provide Ripple’s RLUSD with stronger institutional backing.

How does this affect XRP?

XRP’s price has shown a positive response, climbing over 3% after the announcement. This suggests investor confidence in Ripple’s long-term vision and integration into traditional finance.