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Ripple has made a significant move in its quest to further expand its crypto services by applying for a national banking license from the Office of the Comptroller of the Currency (OCC) and requesting a Federal Reserve Master Account. This strategic decision aims at bolstering Ripple’s regulatory compliance and deepening ties with traditional finance.
The proposed Federal Reserve Master Account would grant Ripple direct access to the US central banking system, enabling the company to hold RLUSD stablecoin reserves directly with the Federal Reserve. According to Ripple CEO Brad Garlinghouse, this move will provide an additional layer of security for RLUSD, further solidifying trust in the stablecoin.
Ripple’s application comes on the heels of Circle Internet Group, which recently submitted a similar request to create a national trust bank. Both companies are proactively aligning with emerging US regulation, specifically the GENIUS Act, which establishes standards for dollar-pegged tokens and designates the OCC to oversee larger stablecoin issuers.
In tandem with this regulatory push, Ripple has partnered with London-based fintech firm OpenPayd to build stablecoin and payment infrastructure for businesses. This collaboration integrates Ripple’s payments network with OpenPayd’s fiat rails, enabling direct minting and burning of RLUSD tokens for enterprise clients. Jack McDonald, Ripple’s SVP of stablecoins, emphasized that this partnership will provide “reliable access to RLUSD,” targeting cross-border payments, treasury management, and dollar liquidity needs.
The market responded positively to the news, with XRP token experiencing a gain of over 3%, climbing from Wednesday evening to reach a 24-hour peak of $2.27 before settling at $2.24.
Source: coincentral.com
