XRP News: Ripple Applies for US Bank License to Elevate RLUSD

XRP is back in the spotlight as Ripple Labs moves forward with a significant strategic initiative — applying for a U.S. national banking license to boost credibility and trust in its RLUSD stablecoin. This step marks a major push toward regulatory integration within the broader financial system.

Ripple CEO Brad Garlinghouse recently announced that the company has formally submitted an application for a banking license through the Office of the Comptroller of the Currency (OCC). If granted, this national charter would place Ripple under both federal regulation and local oversight by the New York Department of Financial Services (NYDFS).

According to Garlinghouse, securing this dual structure of supervision sets a precedent in the stablecoin industry and elevates the level of trust for institutional users. Ripple’s regulatory-first approach stands out in a market exceeding $250 billion, particularly with RLUSD, a stablecoin that prioritizes compliance and transparency.

One notable element of this initiative involves Ripple’s request for a Master Account with the Federal Reserve. This access would allow the company to directly connect with the U.S. central banking system and hold RLUSD reserves with the Fed itself. The implications of this move are substantial, potentially offering additional stability and confidence in both Ripple’s infrastructure and its stablecoin product.

It’s worth noting that the application was submitted via Standard Custody, a digital asset custody firm that Ripple acquired earlier in 2024. This acquisition bolsters Ripple’s stronghold in secure digital asset management and reinforces its push for building compliant, dependable platforms for users and institutions alike.

In a statement about their intent, Garlinghouse emphasized Ripple’s ongoing commitment to building robust and well-tested systems, asserting that RLUSD is designed with long-term trust and compliance in mind. The focus, he asserted, is to meet and exceed the regulatory expectations that leading institutions are increasingly demanding.

Meanwhile, Ripple isn’t the only player taking a regulatory-centric route. Just two days before Ripple’s announcement, Circle — the issuer behind the USDC stablecoin — revealed its own plans to obtain a banking license. Circle has formally filed with the OCC to establish First National Digital Currency Bank, N.A., a national trust charter entity.

This move by Circle aims to allow the company to independently custody reserves backing USDC, moving away from reliance on third-party banking partners. Circle’s CEO, Jeremy Allaire, called the effort a pivotal step in forming a transparent and efficient digital financial system. The company is also preparing to comply with expected U.S. regulations for dollar-backed stablecoins, which include full reserve backing and monthly disclosure requirements.

These actions unfold against the backdrop of the progressing GENIUS Act — proposed federal legislation designed to regulate stablecoins more closely. While the bill has cleared the Senate, it still needs to pass through the House to become law. If successful, the legislation will set the standards for reserve backing and operational transparency among stablecoin issuers within the United States.

Related: Expert Advice: Sell XRP If You’re Confused

As Ripple continues to position XRP and RLUSD for long-term success, these developments show a broader shift across the stablecoin market — one where regulatory compliance is becoming as critical as technological innovation.