Ripple Seeks U.S. Bank Charter for Stablecoin Operations

Ripple Labs has taken a significant step toward formalizing its presence in the U.S. banking system by applying for a national trust bank charter from the Office of the Comptroller of the Currency (OCC). The company, through its Chief Legal Officer Stuart Alderoty, submitted the application for "Ripple National Trust Bank, N.A." on June 30, 2025. This move is aimed at supporting the operations of Ripple’s stablecoin, RLUSD, under federal banking regulations [1].

The public release of Volume 1 of the application has provided initial insight into Ripple’s strategic plans. The proposed entity will not serve retail customers and will not engage in deposit-taking or lending activities, which means it will not fall under the Community Reinvestment Act. Instead, the trust bank will focus exclusively on fiduciary services and the management of stablecoin reserves, specifically for business-to-business operations [2].

Ripple’s new banking organization is positioned to provide custodial services for tokenized assets, allowing the company to build a regulated infrastructure for digital finance. This approach enables Ripple to separate its stablecoin operations from its broader digital asset activities, thereby avoiding potential regulatory overlap. The company’s CEO, Brad Garlinghouse, has emphasized that the goal is to operate within traditional financial frameworks while expanding the role of digital assets in mainstream finance [5].

A key component of Ripple’s strategy is securing access to a Federal Reserve Master account, which would allow direct settlement of transactions with the central bank and the ability to hold RLUSD reserves at the Federal Reserve. If granted, this access could significantly improve the efficiency and scalability of Ripple’s stablecoin payment infrastructure, reinforcing its position in the token finance space [6].

Ripple’s dual approach—establishing a federally chartered trust bank and pursuing Fed access—represents a clear shift toward regulatory integration. The release of Volume 1 marks a transparent move that offers stakeholders a clearer understanding of Ripple’s proposed framework and operational model [1].

The broader cryptocurrency industry has also seen similar efforts from other firms seeking bank charters and traditional financial licenses to align their operations with regulatory expectations. Ripple’s initiative is part of a wider trend aimed at building trust with institutional investors and ensuring long-term viability in the evolving digital asset ecosystem [7].

However, Ripple’s application has not been without resistance. Trade groups like the American Bankers Association have raised concerns over systemic risks and the adequacy of safeguards for a crypto-backed banking entity. Ripple has responded by asserting that its approach is consistent with existing legal frameworks and designed to meet regulatory expectations [8].

If approved, the granting of a federal bank charter would not only legitimize Ripple’s stablecoin operations but also set a precedent for other crypto firms pursuing similar regulatory pathways. The outcome of Ripple’s application could shape the future of digital asset banking in the United States and influence how traditional and crypto financial systems intersect [6].

Source: [1] Ripple's Banking License Update: Here's Latest ... (https://u.today/ripples-banking-license-update-heres-latest-development)

[2] First glimpses of Volume 1 of Ripple's OCC banking ... (https://www.mitrade.com/insights/news/live-news/article-3-1007378-20250802)

[5] Marco Ħ - X (https://x.com/MarcoSalzmann80/status/195157****207053746)

[6] Is an XRP Pullback on the Horizon? Here's What Investors ... (https://www.aol.com/xrp-pullback-horizon-heres-investors-101000954.html)

[7] Regulators Handed the Crypto Industry a 5-Year Head ... (https://cryptoadventure.com/regulators-handed-the-crypto-industry-a-5-year-head-start-can-wall-street-catch-up/)

[8] Banking Regulations & Policy News (https://www.bankingdive.com/topic/regulations-policy/)