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Ripple applies for U.S. bank license – Next big step in crypto’s Wall Street takeover?
July 4, 2025
In a move that could be seen as the next significant step in cryptocurrency’s bid to take over the financial landscape on Wall Street, Ripple has announced its intention to apply for a United States bank license with the Office of the Comptroller of the Currency (OCC). This application is part of Ripple’s plan to strengthen its regulatory moat amid growing competition in the stablecoin market.
Ripple CEO Brad Garlinghouse confirmed the development on X post, stating that the company has applied for both a bank license and a Fed Master account. According to him, this would enable Ripple to hold RLUSD reserves directly with the Federal Reserve, providing an additional layer of security for its customers.
The move comes amidst a backdrop of intense competition in the stablecoin market, where other major players such as Circle have already made similar applications. As per information available, Circle applied for the same license on June 30 and expressed the hope that this development would help “integrate digital assets” with the broader US financial system.
Other notable entities like Erebor and Wise have also filed their applications, while Custodian Bank’s Caitlin Long clarified that most of these applications are actually for trusts, not banks. Former lawmaker John Deaton is more optimistic, predicting that Ripple will eventually become a bank and offer crypto-backed loans and mortgages in the future.
However, not everyone is convinced about the merits of this move. Arthur Hayes, the founder of BitMEX, has expressed his skepticism regarding the feasibility of cryptocurrency companies competing with traditional financial institutions like JPMorgan Chase. According to him, no matter how hard they try, these entities will always lose because “you can’t outcompete them at their own game.”
It remains to be seen whether Ripple’s application is approved and what potential implications this could have for the crypto market and the broader financial landscape.
Source: ambcrypto.com
