Ripple Applies for US Banking License – Could Federal Oversight Supercharge Its Stablecoin RLUSD?

Ripple has filed an application for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC), according to a report by The Wall Street Journal.

The move indicates Ripple’s intention to bring its dollar-backed stablecoin, RLUSD, under federal supervision and expand its crypto-related financial services in the United States.

Ripple Seeks OCC Charter in Bid to Become a Federally Regulated Stablecoin Issuer

The filing was made on Wednesday and, if approved, would place Ripple under dual regulatory oversight, both at the state level through the New York Department of Financial Services (NYDFS) and now federally through the OCC.

Ripple CEO Brad Garlinghouse confirmed the application in a post on X, calling it a continuation of the company’s “long-standing compliance roots.”

“If approved, we would have both state (via NYDFS) and federal oversight,” Garlinghouse wrote. “A new (and unique!) benchmark for trust in the stablecoin market.”

The national charter would give Ripple the ability to streamline settlements by removing the need for intermediary banks.

It would also allow the firm to offer additional crypto-related financial services under a regulatory structure long associated with traditional banks.

Ripple is also seeking a Federal Reserve master account. That account would give the firm direct access to the Fed’s payment rails and allow it to hold stablecoin reserves at the central bank.

RLUSD, Ripple’s dollar-backed stablecoin, was launched in December 2024 and currently has a market capitalization of around $470 million, according to CoinMarketCap.

Though far smaller than market leaders Tether and Circle’s USDC, RLUSD is among the larger stablecoins in circulation.

The timing of Ripple’s application comes just days after Circle Internet Group, the issuer of USDC, filed for its own national banking license.

Circle is looking to launch a federally regulated entity named First National Digital Currency Bank, which would allow it to offer digital asset custody and other services.

That application followed Circle’s public listing earlier this year, which valued the firm at nearly $18 billion.

The rush comes as lawmakers in Washington are advancing a legal framework for stablecoins.

Earlier this month, the Senate passed the GENIUS Act, which would require issuers to maintain full dollar reserves and publish monthly disclosures. The bill is awaiting a vote in the House, with support from President Trump.

A report from Grayscale noted that the bill could give stablecoins a clearer path to mainstream acceptance.

“The GENIUS Act will likely support stablecoin adoption in the U.S. while incorporating sensible safeguards for consumer protection and financial stability,” Grayscale’s research team wrote.

For Ripple, gaining OCC approval would mark a major shift in how stablecoins are supervised in the U.S., potentially making RLUSD one of the most regulated stablecoins on the market.

While the outcome of the application is still pending, Ripple’s pursuit of a national charter reflects a growing trend among crypto firms seeking legitimacy and longevity within the U.S. financial system.

Ripple’s Legal Setback Clouds Stablecoin Ambitions as Tech Upgrades Forge Ahead

As Ripple seeks a U.S. banking license and works to expand its RLUSD stablecoin, the company faces renewed regulatory friction that could complicate its path forward.

On June 26, Judge Analisa Torres rejected a proposed $50 million settlement between Ripple and the U.S. Securities and Exchange Commission, which would have dissolved the standing injunction on institutional XRP sales.

Despite both sides agreeing to reduce the original $125 million penalty by 60%, the court found no “exceptional circumstances” to justify altering a final judgment.

The decision leaves Ripple restricted from offering XRP to institutional clients, though retail trading remains unaffected.

The legal standoff stems from the SEC’s 2020 lawsuit, which alleged Ripple raised $1.3 billion through unregistered XRP sales.

Following the ruling, Ripple CEO Brad Garlinghouse announced the company would drop its cross-appeal, adding that the SEC is also expected to withdraw its appeal.

With litigation winding down, Ripple is turning its attention back to development.

RippleX, the company’s tech arm, recently released XRP Ledger v2.5.0, introducing upgrades designed for institutional use, including support for escrowed stablecoins (XLS-85) and complex transaction bundling (XLS-56).

Daily active addresses on the network have surged from 35,000 to over 295,000.

Meanwhile, Ripple integrated Wormhole to connect its ecosystem with more than 35 blockchains, enhancing interoperability ahead of RLUSD’s debut.

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