Ripple Applies for U.S. National Bank Charter, Aiming to Enhance Legitimacy in the Stablecoin Market

Ripple, the blockchain company known as the issuer of the RLUSD stablecoin and XRP token, has officially submitted an application for a U.S. national bank charter to the Office of the Comptroller of the Currency (OCC). This strategic move places Ripple alongside companies like Circle, which are also seeking regulatory clarity for their digital asset operations.

Ripple Seeks to Strengthen Trust in the Stablecoin Sector

Ripple CEO Brad Garlinghouse explained that the bank charter application reflects the company’s commitment to enhancing legitimacy and trust in the stablecoin sector. If approved, Ripple would be directly supervised by two major regulators: the OCC at the federal level and the New York Department of Financial Services (NYDFS) at the state level. This dual regulatory structure is expected to position RLUSD as one of the most transparent and compliant stablecoins in the market.

Applying for Master Account Access at the Federal Reserve

In addition to pursuing a bank charter, Ripple has applied to open a Master Account at the Federal Reserve through its subsidiary, Standard Custody & Trust. With this account, Ripple would be able to hold RLUSD reserves directly at the Federal Reserve and process stablecoin transactions in real-time, including outside of conventional banking hours.

Bridging the Gap Between Crypto and Traditional Banking

If the application is approved, Ripple will become one of the first crypto companies to strengthen its connection with the U.S. national banking system. This step reflects an emerging trend in the industry, where major players such as Anchorage Digital and Circle have also pursued national licensing paths to build trust with institutional investors.

XRP Rises on Positive Investor Sentiment

The crypto market responded positively to the news. The price of XRP surged by approximately 5% shortly after the announcement, reflecting investor optimism toward greater regulatory clarity and inclusiveness in the stablecoin sector.

Ripple Claims It Will Set a New Standard in the Stablecoin Market

Jack McDonald, Senior Vice President of Stablecoins at Ripple, emphasized that this dual regulatory approach will set a new industry standard for transparency and compliance in the stablecoin space. He also stated that securing a Master Account at the Federal Reserve will strengthen the security of RLUSD reserves and enhance the operational efficiency of the stablecoin.