Ripple applies for a U.S. national banking license as it pushes to integrate its stablecoin RLUSD into mainstream finance, joining a growing list of crypto firms seeking regulatory approval.
Ripple, the blockchain-based payments company, has filed for a national banking license in the United States, marking a significant move to deepen its presence within the mainstream financial system and expand the reach of its stablecoin operations.
The company submitted its application to the U.S. Office of the Comptroller of the Currency (OCC) on Wednesday, becoming the latest in a growing number of crypto firms seeking to obtain federal banking charters in anticipation of tighter regulations on stablecoins.
Ripple manages cross-border payments and oversees RLUSD, its dollar-backed stablecoin. Stablecoins, which are typically pegged to government-issued currencies like the U.S. dollar, maintain a 1-to-1 exchange ratio by holding reserves in cash or low-risk assets such as U.S. Treasurys.
Currently, RLUSD operates under state-level oversight through the New York Department of Financial Services. If granted, a national trust bank charter would bring RLUSD under the regulatory scope of the OCC as well.
“The dual nature of that regulation would basically have set a new bar for transparency and compliance in the stablecoin market,” said Jack McDonald, senior vice president of stablecoins at Ripple.
In the long term, Ripple has indicated it may leverage the banking license to introduce additional crypto services, further blurring the line between digital assets and traditional finance.
Separately, Ripple’s subsidiary, Standard Custody & Trust Company, submitted an application on Monday for a Federal Reserve master account. Such an account would enable Ripple to hold RLUSD reserves directly with the Fed, providing the ability to issue and redeem stablecoins outside normal banking hours.
McDonald noted that while individual investors, wealthy clients, and crypto-native companies have driven the early adoption of stablecoins, large institutional players have remained cautious, awaiting increased regulatory clarity.
With Congress poised to advance legislation designed to integrate stablecoins into the established financial system, industry observers believe that moment is drawing closer. The proposed Genius Act, which would require bank charters for stablecoin issuers, has prompted a wave of crypto companies to seek federal approval ahead of the law’s passage.
Anchorage Digital currently remains the only crypto-focused firm with a federal banking charter in the U.S. Circle, the company behind the world’s second-largest stablecoin, recently applied for a similar license. Circle’s stablecoin boasts a market cap of approximately $62 billion.
Ripple’s RLUSD, launched late last year, has a market cap of around $469 million, according to data from CoinMarketCap.
Ripple’s pursuit of a banking license signals the company’s broader ambition to establish a firm foothold in regulated finance, as the once loosely governed crypto sector moves steadily towards greater institutional oversight and integration.
