Ripple Labs has officially applied for a national banking license in the United States with the Office of the Comptroller of the Currency (OCC), following a similar move by Circle Internet Group, a major stablecoin issuer. This application aims to bring Ripple's dollar-backed stablecoin RLUSD under federal banking regulation, supplementing its existing state-level oversight by the New York Department of Financial Services (NYDFS).
Ripple CEO Brad Garlinghouse emphasized that obtaining this license would set a "new (and unique!) benchmark for trust in the stablecoin market", as the company would then be subject to both federal and state regulatory frameworks. This dual oversight is expected to enhance transparency, compliance, and institutional confidence in RLUSD.
Additionally, Ripple has applied for a Master Account with the Federal Reserve through its subsidiary Standard Custody & Trust Company. If approved, this would allow Ripple to hold RLUSD reserves directly with the Fed, improving security and operational efficiency by enabling reserve custody and stablecoin issuance outside normal banking hours.
This move aligns with broader industry trends as crypto firms seek legitimacy and deeper integration with traditional finance amid advancing U.S. legislation, such as the GENIUS Act, which proposes federal regulation of stablecoin issuers. Circle recently applied for a national trust bank charter, and other firms like Coinbase and Paxos are exploring similar paths.
Following Ripple’s announcement, its XRP token saw a price increase of about 3%, reflecting market optimism about the company’s regulatory progress and potential expansion in crypto financial services.
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Interesting move by Ripple. Gaining a federal license could really boost trust in RLUSD.