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Ripple Eyes U.S. Banking License Amid Regulatory Push
In a bold move aimed at further solidifying its presence in the financial sector, Ripple Labs has filed for a national banking charter with the United States Office of the Currency (OCC). This development comes amidst an escalating regulatory push across the globe.
According to reports, Ripple CEO Brad Garlinghouse confirmed that the company is seeking this license to enhance its regulatory compliance. By obtaining a national banking charter, Ripple would be able to expand its reach and offer more comprehensive financial services to its clients.
The move marks a significant shift in the company’s strategy, as it has previously focused on providing payment solutions through its subsidiary Standard Custody. Garlinghouse emphasized that Ripple is committed to building trusted, battle-tested, and secure infrastructure, with RLUSD (a Ripple-backed stablecoin) taking center stage.
RLUSD reserves will now be held directly with the Federal Reserve, courtesy of a separate application by Standard Custody for a Fed Master Account. This move underscores Ripple’s commitment to regulatory compliance and transparency.
Ripple joins other prominent crypto companies like Circle and Fidelity Digital Assets in seeking mainstream banking recognition. By doing so, these entities aim to bridge the gap between traditional finance and decentralized blockchain-based solutions.
As the cryptocurrency space continues to evolve, it is essential for companies to adapt to changing regulations and ensure the integrity of their operations. The move by Ripple Labs underscores this commitment, as it seeks to strengthen its position within the financial sector.
In conclusion, this development serves as a significant milestone in Ripple’s journey towards mainstream adoption.
Source: coinpedia.org
