Ripple’s recent move to seek a national banking license from the U.S. Office of the Comptroller of the Currency (OCC) has stirred interest and speculation across the crypto community. The application, confirmed by a Ripple spokesperson, could pave the way for the digital asset firm to broaden its crypto services, moving beyond state boundaries under the umbrella of federal regulation. This step comes amid a growing push for stablecoin companies to secure federal oversight as U.S. lawmakers work towards comprehensive stablecoin and crypto market regulations. For more on the legislative backdrop, see our coverage of the stablecoin bill heading to the House.
Ripple’s Ambitious Step Forward
In a bold stride towards expansion, Ripple aims to secure a coveted national banking charter. This move would allow the company to enhance its crypto services, providing a uniform regulatory framework to operate across the United States. Currently, Ripple’s $440 million RLUSD stablecoin is regulated by the New York Department of Financial Services (NYDFS), and the firm offers digital asset custody services.
The announcement of the application sent ripples—pun intended—through the market, with XRP, the native cryptocurrency of the XRP Ledger network, seeing a 3% uptick in response. Analysts suggest that this market reaction reflects optimism about Ripple’s potential to set a new standard in the stablecoin sector, particularly if it succeeds in achieving dual state and federal oversight.
Echoes of a Broader Trend
Interestingly, Ripple’s application follows closely on the heels of a similar move by Circle, the issuer of USDC. This sequence of events highlights a burgeoning trend among stablecoin issuers, who are increasingly seeking federal charters. Such developments come as the U.S. House of Representatives deliberates on a stablecoin bill, underscoring the industry’s shift towards regulation and oversight. For insights into broader regulatory efforts, refer to our analysis of the new crypto market structure framework proposed by U.S. Senators.
Brad Garlinghouse, Ripple’s CEO, expressed confidence on social media that dual oversight would establish a “new benchmark for trust” in the stablecoin market. According to Garlinghouse, this would not only enhance trust but also future-proof the RLUSD by ensuring additional security layers.
Navigating the Regulatory Maze
Adding another layer to Ripple’s strategy, the company has applied for a master account at the Federal Reserve via Standard Custody, a trust and custody firm it acquired last year. If successful, this would allow Ripple to directly access the Fed, bypassing intermediary banks—a privilege that has eluded other crypto-focused firms like Kraken and Custodia Bank.
A master account would enable Ripple to store stablecoin reserves, such as U.S. Treasuries, directly with the central bank. Garlinghouse noted that this would “provide an additional layer of security,” a sentiment likely to resonate with both investors and regulators.
The Road Ahead: Opportunities and Challenges
The implications of Ripple’s potential success are significant. Achieving a federal charter alongside a master account could revolutionize how stablecoins are managed and regulated in the U.S., potentially setting a precedent for others in the sector. Yet, the path is fraught with challenges. The Federal Reserve’s historically cautious approach to granting master accounts to crypto firms suggests that Ripple’s journey may be anything but straightforward.
However, the potential rewards are substantial. With both state and federal oversight, Ripple could position itself as a leader in the stablecoin market, bolstering trust and security—key factors for widespread adoption. As the crypto landscape continues to evolve, Ripple’s moves will be closely watched, raising questions about how other firms might follow suit.
In conclusion, as Ripple embarks on this ambitious journey, the crypto world waits with bated breath. The stakes are high, and the outcome could shape the future of stablecoin regulation in the U.S., offering a glimpse into the next chapter of digital finance.
Source
This article is based on: Ripple Applies for Federal Bank Trust Charter, XRP Jumps 3%
Further Reading
Deepen your understanding with these related articles:
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- US judge denies Ripple, SEC joint request to reduce $125M penalty
- Ripple Stuck With $125 Million Penalty as Judge Denies XRP Settlement With SEC
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
