Crypto Firm Ripple Applies for U.S. Banking License

Crypto firm Ripple Labs is seeking a national banking license from the U.S. Office of the Comptroller of the Currency (OCC), following similar applications by other companies as crypto firms endeavor to formally enter traditional finance.

Ripple CEO Brad Garlinghouse confirmed the application on Wednesday via X, corroborating a prior Wall Street Journal report. “True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC,” Garlinghouse stated.

Stablecoin Market Benchmark

If granted the license, Garlinghouse suggested, Ripple would set “a new (and unique!) benchmark for trust in the stablecoin market,” operating under both federal and state oversight. New York’s Department of Financial Services already regulates Ripple USD (RLUSD).

Following Circle’s Path

Ripple’s application comes just two days after stablecoin issuer Circle Internet Group submitted its own request to the OCC for a national trust bank charter to oversee its USDC reserves.

The simultaneous moves occur alongside the U.S. Senate’s passage of the stablecoin regulating GENIUS Act. This legislation establishes standards for dollar-pegged tokens and designates the OCC to oversee larger stablecoin issuers.

Ripple’s Proactive Steps

Circle CEO Jeremy Allaire characterized the firms’ actions as “proactive steps” to “align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins.”

Anchorage Digital represents the only existing crypto-linked financial institution holding a national bank charter.

Ripple Seeks Fed Access

Ripple’s Garlinghouse also announced that the company, through its Standard Custody subsidiary, has submitted an application for a Master Account with the Federal Reserve. This would provide direct access to the U.S. central banking system for holding RLUSD reserves.

“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.

Garlinghouse referenced current regulatory efforts positively, stating, “Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in,” implicitly countering narratives of crypto suppression.

Market Reaction

In response to Ripple’s application news, XRP token prices saw a significant rise. According to CoinGecko data, XRP climbed over 3.2% in the 24 hours following Garlinghouse’s X post, trading notably above the $2.2 mark.