03.07.2025 06:06
Ripple, following in Circle's footsteps, has submitted an application for a US banking license, a strategic move designed to solidify its position within traditional finance and comply with the evolving regulatory environment for stablecoins. This bold action by the cryptocurrency company aims to bring its RLUSD stablecoin under the dual jurisdiction of state and federal authorities, a direct response to recent legislation such as the GENIUS Act.
This application for a national bank charter from the Office of the Comptroller of the Currency (OCC), announced by CEO Brad Garlinghouse on X (formerly Twitter), signifies a significant shift in Ripple's approach. Securing this charter would place Ripple under the comprehensive oversight of both federal and state regulatory bodies, building upon the existing New York Department of Financial Services' supervision of its RLUSD stablecoin. Garlinghouse emphasized that this dual regulatory framework will establish a new benchmark for trustworthiness within the stablecoin sector.
The timing of Ripple's application is noteworthy, mirroring a similar move by Circle, the issuer of USDC, just days prior. Circle also sought OCC approval to operate as a national trust bank, responsible for managing its stablecoin reserves. Both applications are a direct consequence of the US Senate's passage of the GENIUS Act, which establishes regulatory guidelines for stablecoin issuers and designates the OCC as the principal federal regulator for major players in the field. Circle's CEO, Jeremy Allaire, explicitly stated the application's purpose: to adapt proactively to the evolving regulatory landscape governing dollar-backed stablecoins.
Complementing its OCC application, Ripple has also applied for a Master Account with the Federal Reserve, furthering its integration into the established financial system. This proactive approach contrasts sharply with the uncertainty surrounding some crypto firms, while simultaneously reflecting the increasing convergence between the cryptocurrency and traditional banking sectors. The concurrent rise of Erebor, a new crypto-focused bank backed by Peter Thiel, and KBC Bank's introduction of crypto investment options in Europe, highlights a broader trend of institutional adoption and integration within the global financial landscape. These developments are sourced from various internet resources.
