Ripple Seeks U.S. Trust License for Stablecoin Ambitions

Ripple Labs has taken a significant step towards reshaping its stablecoin strategy by applying for a U.S. trust charter from the New York Department of Financial Services (NYDFS). This move positions Ripple to operate as a limited-purpose trust company, aligning with its ambition to enter the stablecoin market through a fully compliant and transparent framework.

If approved, the trust license would enable Ripple to offer custody and issuance services under state oversight, addressing regulatory concerns that have long plagued other stablecoin issuers. NYDFS is known for its rigorous regulatory standards, including audits, risk management protocols, and capital requirements. This approval process would strengthen Ripple’s credibility among institutional clients and regulators alike, according to Ripple’s head of legal, Stuart Alderoty.

This regulatory push comes as Ripple is winding down its years-long legal battle with the U.S. Securities and Exchange Commission. On June 29, Ripple CEO Brad Garlinghouse confirmed that the company had dropped its cross-appeal in the ongoing legal battle with the SEC. This decision signals a move towards resolution in the case, with the expectation that the SEC will also drop its appeal. Market analysts view this legal clarity as essential to Ripple’s expansion into new financial services.

The global stablecoin market has seen substantial growth, reaching a total supply of $175 billion by June. This expansion is further highlighted by a reported $16.97 billion increase in stablecoin value throughout the year. Circle’s USDC and Tether’s USDT currently dominate with a combined market share of over 85%. Ripple’s proposed stablecoin would enter a competitive field, but its regulatory-first approach may help it stand out.

U.S.-based users accounted for nearly 43% of all stablecoin transaction volume in Q2 2025, making the U.S. market critical for any issuer seeking wide adoption. A NYDFS trust license would give Ripple the legal green light to operate in this space with greater legitimacy. Ripple has already established the technical infrastructure required to support stablecoin issuance. Its XRP Ledger (XRPL) supports native stablecoin functionality and high-throughput transactions.

The company has also partnered with banks and payment processors across more than 40 countries, positioning it to distribute its stablecoin through existing channels. Moreover, analysts noted that Ripple’s network architecture is well-suited for programmable finance applications, including cross-border payments, payroll, and asset tokenization. Approval from NYDFS could take several months, with most applications taking anywhere from six to twelve months to process.

In the context of increasing regulatory scrutiny, Ripple’s move reflects a shift toward institutional-grade infrastructure in the crypto space. Rather than sidestepping regulations, Ripple appears to be embracing them to support a long-term vision for its stablecoin. This strategic bid is poised to be a game-changer for the company's stablecoin ambitions, as it seeks to navigate the complex regulatory landscape and solidify its position in the market.

Ripple's stablecoin, RLUSD, has already received recognition in key financial hubs. The Dubai Financial Services Authority (DFSA) has approved RLUSD as a recognized token within the Dubai International Financial Centre. This approval underscores the growing acceptance of Ripple's stablecoin and its potential to become a significant player in the global financial ecosystem. Additionally, AMINA Bank AG, a crypto-regulated bank by the Swiss Financial Market, has pioneered support for RLUSD, further bolstering its credibility and demand.

The implications of Ripple's U.S. trust license bid are far-reaching. By gaining access to the federal regulatory system, Ripple can offer more robust and secure services to its clients. This move is expected to enhance trust in Ripple's stablecoin, making it a more attractive option for institutions and individuals alike. Furthermore, the ability to custody its own assets will provide Ripple with greater control over its operations, allowing it to innovate and adapt more quickly to market demands.

Ripple's ambitions extend well beyond stablecoin issuance. The company is also exploring other avenues to expand its reach and influence in the cryptocurrency space. By obtaining a U.S. trust license, Ripple can position itself as a leader in the stablecoin market, paving the way for future growth and innovation. This strategic move is a testament to Ripple's commitment to regulatory compliance and its dedication to providing secure and reliable financial services.