Crypto firm Ripple applies for a national banking license
Ripple, a firm focused on cross-border payments using blockchain technology, applied for a national banking license Wednesday, according to The Wall Street Journal.
The company is known for two cryptocurrencies: dollar-backed stablecoin RLUSD and the fourth-largest token by market capitalization, XRP.
Ripple filed its application with the US Office of the Comptroller of the Currency, which regulates and supervises national banks and federal savings associations. With a national bank charter, the firm’s RLUSD stablecoin would be regulated under the OCC in addition to the New York Department of Financial Services. The NYDFS approved the public rollout of RLUSD last year.
“True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market,” Ripple CEO Brad Garlinghouse posted on X.
The national banking license application comes in the same week as Ripple’s subsidiary Standard Custody & Trust Company applied for a Federal Reserve master account. “This access would allow us to hold $RLUSD reserves directly with the FED and provide an additional layer of security to future proof trust in RLUSD,” Garlinghouse said.
Meanwhile, stablecoin giant Circle, the firm behind the second-largest stablecoin, USDC, submitted a national bank charter application with the OCC on Monday. Ripple and Circle’s applications highlight an ongoing convergence between the traditional finance world and the on-chain economy.
Anchorage Digital is currently the only crypto bank in the US to receive a charter from the OCC.
Ripple filed its application with the US Office of the Comptroller of the Currency, which regulates and supervises national banks and federal savings associations. With a national bank charter, the firm’s RLUSD stablecoin would be regulated under the OCC in addition to the New York Department of Financial Services. The NYDFS approved the public rollout of RLUSD last year.
“True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market,” Ripple CEO Brad Garlinghouse posted on X.
The national banking license application comes in the same week as Ripple’s subsidiary Standard Custody & Trust Company applied for a Federal Reserve master account. “This access would allow us to hold $RLUSD reserves directly with the FED and provide an additional layer of security to future proof trust in RLUSD,” Garlinghouse said.
Meanwhile, stablecoin giant Circle, the firm behind the second-largest stablecoin, USDC, submitted a national bank charter application with the OCC on Monday. Ripple and Circle’s applications highlight an ongoing convergence between the traditional finance world and the on-chain economy.
Anchorage Digital is currently the only crypto bank in the US to receive a charter from the OCC.
