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Major XRP Announcement: Ripple Seeks US Banking License to Boost RLUSD Trust
Ripple Labs has recently announced its intention to apply for a national banking license from the Office of the Comptroller of the Currency (OCC) in order to enhance trust in its RLUSD stablecoin and gain access to the Federal Reserve’s central banking system. This move comes as other prominent crypto companies have similarly opted for regulation to boost credibility.
According to a post by Ripple CEO Brad Garlinghouse, the company will be submitting an application for a national bank charter with the OCC. If approved, this would place Ripple under both state oversight by the New York Department of Financial Services (NYDFS) and federal supervision. This dual regulatory structure is intended to establish a new benchmark for trust in the stablecoin market.
In addition to seeking a banking license, Ripple has also requested a Master Account with the Federal Reserve. This would enable the company to hold RLUSD reserves directly with the central bank. The move is designed to add an extra layer of security and long-term trust in the stablecoin.
Ripple’s bid was submitted through Standard Custody, a crypto custody firm acquired by Ripple in February 2024.
Garlinghouse emphasized that “Ripple always has and will continue to build trusted, battle-tested, and secure infrastructure. In a market worth over $250 billion, RLUSD stands out for putting regulation first and setting the standard that institutions expect.”
This development comes mere days after Circle, the issuer of USDC stablecoin, announced its own application to create a national trust bank named First National Digital Currency Bank, N.A. This move would enable Circle to directly custody the reserves backing USDC, rather than relying on external banking partners.
Circle’s Co-Founder and CEO Jeremy Allaire described this step as a significant advancement towards the creation of a transparent, efficient, and accessible internet-based financial system. He further noted that the company aims to strengthen the infrastructure supporting USDC and align with upcoming U.S. regulations for dollar-pegged stablecoins, which require issuers to maintain full dollar reserves and provide monthly reports.
These developments coincide with ongoing legislative efforts, as the GENIUS Act has recently passed the Senate but still needs to advance in the Republican-controlled House before becoming law.
Source: cryptopotato.com
