XRP: Ripple Seeks U.S. Bank Charter and Fed Account

XRP parent company Ripple is taking significant steps toward strengthening its position in the regulated financial ecosystem. Ripple has officially applied for a national banking license from the Office of the Comptroller of the Currency (OCC), signaling its ambitions to bring its dollar-pegged stablecoin, RLUSD, under more comprehensive federal oversight.

Brad Garlinghouse, CEO of Ripple, recently confirmed the move on X, following reports that the application was formally filed. This is a major development in Ripple’s roadmap as it looks to integrate more deeply with the traditional financial system, particularly in the realm of stablecoins.

Dual Licensing Strategy for RLUSD

If granted, the national bank charter will place RLUSD under dual regulatory jurisdictions—both state and federal. Ripple had previously secured a state-level banking license from the New York Department of Financial Services (NYDFS) in 2023, enabling its operations within New York and offering an initial layer of oversight.

Garlinghouse emphasized that achieving regulatory clarity at both the state and federal levels would create a strong foundation of trust for RLUSD. This approach could set a new precedent within the estimated $250 billion stablecoin sector, aligning RLUSD’s compliance standards closer to those for fiat currencies.

Cryptocurrency Firms Eye National Bank Charters

Historically, crypto companies have faced steep hurdles in obtaining U.S. national bank charters. Anchorage Digital remains the only such company to have successfully done so. However, the regulatory landscape is shifting as the OCC, under expected new leadership from Jonathan Gould, demonstrates a more crypto-friendly stance.

This regulatory shift has stirred optimism across the digital asset space. Notably, firms like Fidelity Digital Assets and Circle have also submitted applications to the OCC in pursuit of a national charter, paving the way for more inclusive participation of crypto entities in traditional banking systems.

Ripple’s Bid for a Fed Master Account

Alongside its OCC application, Ripple has also submitted a request to the Federal Reserve for a master account. This was confirmed by Garlinghouse, who noted that the application was made via Ripple’s subsidiary, Standard Custody.

If approved, this account would provide Ripple the ability to hold reserve funds directly with the Federal Reserve—a privilege traditionally reserved for regulated banking institutions. The access would enhance both the security and reliability of RLUSD transactions.

Crypto journalist Eleanor Terrett highlighted the significance of this step, quoting legal experts who describe a Fed master account as a ‘Diamond-level’ asset—suggesting it surpasses even a national charter, which is considered ‘Platinum’. This tiered analogy underscores how critical such access is to enhancing stablecoin reliability.

RLUSD’s Compliance-First Approach

Throughout these regulatory advancements, Garlinghouse has remained vocal about Ripple’s commitment to building secure, regulation-centric infrastructure. He reiterated that RLUSD’s compliance-first philosophy differentiates it in the increasingly competitive stablecoin domain.

Launched in December 2024, RLUSD has quickly gained traction, now ranked as the ninth-largest stablecoin globally. With a market capitalization of $469 million and a recent 24-hour trading volume of $57.01 million—an increase of 10.80%—RLUSD is becoming a key player in the stablecoin market.

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

In summary, Ripple’s aggressive pursuit of federal regulatory legitimacy through both a national banking license and Fed master account represents a pivotal evolution in its strategy. If successful, these moves could set a new gold standard for institutional trust, not only for RLUSD but also for the XRP ecosystem as a whole.