KEY FACTS: Ripple Labs has applied for a U.S. national banking license with the Office of the Comptroller of the Currency (OCC) and a Federal Reserve Master Account to enhance the credibility and regulatory compliance of its recently launched stablecoin, Ripple USD (RLUSD). Following Circle’s similar move to establish a national trust bank, Ripple’s application aligns with the proposed GENIUS Act, which mandates banking charters for stablecoin issuers, aiming to set a new standard for transparency in the stablecoin market.

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Source: Ripple

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Ripple Applies for U.S. National Banking License

Ripple Labs, the San Francisco-based blockchain payments company, has officially applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC). The announcement, made by Ripple CEO Brad Garlinghouse on July 2, 2025, via a post on X, positions Ripple alongside other crypto giants like Circle Internet Group in seeking federal oversight to enhance the credibility and regulatory compliance of its operations, particularly for its recently launched stablecoin, Ripple USD (RLUSD).

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.
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Ripple’s application for a national bank charter comes just days after Circle, the issuer of the USDC stablecoin, announced its own bid to establish a national trust bank under OCC oversight. Both companies are responding to a rapidly evolving regulatory landscape for stablecoins in the United States, driven by recent legislative developments such as the GENIUS Act, which is currently under consideration in the House of Representatives after clearing the Senate. The GENIUS Act would mandate that stablecoin issuers obtain banking charters, a requirement that Ripple and Circle are proactively addressing to ensure compliance and foster trust in their digital assets.

Ripple’s RLUSD, launched in October 2024, is a dollar-pegged stablecoin designed to facilitate cross-border payments and provide a stable store of value within the crypto ecosystem. With a market capitalization of approximately $470 million, RLUSD is significantly smaller than market leaders like Tether (USDT) and Circle’s USDC, which boasts a market cap exceeding $62 billion. However, RLUSD has quickly gained traction, ranking among the top stablecoins in the U.S. market. Ripple’s pursuit of a national banking license aims to boost the stablecoin’s legitimacy by placing it under dual state and federal oversight, a structure that Garlinghouse described as setting “a new benchmark for trust in the stablecoin market.”

In addition to the OCC application, Ripple has also applied for a Federal Reserve Master Account through its subsidiary, Standard Custody & Trust Company, which it acquired earlier in 2024. A Fed Master Account would grant Ripple direct access to the U.S. central banking system, allowing it to custody RLUSD reserves directly with the Federal Reserve. This move is seen as a critical safeguard to enhance the security and transparency of RLUSD, addressing growing demands for stability and trust in the digital asset sector. According to crypto journalist Eleanor Terrett, a banking lawyer described a Fed Master Account as “Diamond” in significance, outranking even a national bank charter, which is considered “Platinum.”

Ripple’s application comes on the heels of Circle’s own filing for a national trust bank charter, announced just two days earlier. Circle’s proposed entity, the First National Digital Currency Bank, N.A., aims to self-custody its USDC reserves and expand institutional crypto custody services. This flurry of applications from major crypto firms, including Ripple, Circle, and others like Fidelity Digital Assets, reflects a broader industry trend toward deeper integration with traditional finance. The only crypto firm currently holding a national bank charter is Anchorage Digital, setting a precedent that Ripple and Circle are eager to follow.

The timing of these applications is no coincidence. The crypto industry has long faced regulatory uncertainty, with inconsistent oversight creating barriers to institutional adoption. The GENIUS Act, if passed, would establish clearer guidelines for stablecoin issuers, requiring them to operate under federal banking regulations. Applying for national charters means Ripple and Circle are preemptively aligning with these emerging rules, positioning themselves as compliant players in a market increasingly scrutinized by regulators. Jack McDonald, Ripple’s senior vice president of stablecoins, emphasized that the dual state and federal oversight would “set a new bar for transparency and compliance in the stablecoin market.”

Ripple’s pursuit of a banking license is not only about RLUSD but also about strengthening its broader ecosystem, including its native cryptocurrency, XRP. The company has long positioned XRP as a tool for facilitating efficient cross-border payments, a use case that could be significantly enhanced by operating as a licensed bank. Ripple, if secures this national charter, would gain the ability to process payments and financial services directly, without relying on third-party intermediaries. This shift could reduce operational costs, streamline processes, and enhance Ripple’s credibility among institutional clients wary of engaging with unregulated crypto entities.

The announcement has already had a tangible impact on the market, with XRP experiencing a 3-4% price surge following the news, trading at approximately $2.23 as of July 3, 2025. Some analysts are even more bullish, with XRP enthusiasts on X predicting a potential climb to $3, citing the banking license application as a major catalyst.

The broader implications of Ripple’s banking license bid extend beyond its own operations. As more crypto firms seek federal charters, the lines between traditional finance and digital assets are blurring. This convergence could pave the way for greater institutional adoption of cryptocurrencies and stablecoins, as well as the development of new financial products, such as exchange-traded funds (ETFs) tied to assets like XRP. Major asset managers have already expressed interest in XRP-based ETFs, and Ripple’s banking license could further bolster such initiatives.

Ripple’s application for a U.S. national banking license, alongside its bid for a Fed Master Account, shows the company’s ambition to redefine the role of stablecoins and blockchain technology in the global financial system. Approval could mark a turning point for Ripple, solidifying its role as a bridge between digital assets and traditional banking.

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Information Sources:

• Brad Garlinghouse/ X
• The Wall Street Journal
• Cointelegraph

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