Ripple Seeks National Bank Charter for XRP Ledger Operations

Ripple Labs, the company behind the cryptocurrency XRP, has applied for a national bank charter in the United States, following in the footsteps of Circle, the issuer of the stablecoin USDC. This move is aimed at bringing digital asset operations under the federal regulatory framework. Ripple, which plays a crucial role in the creation of the blockchain-based payment network XRP Ledger, will need approval from the Office of the Comptroller of the Currency (OCC) to obtain the national bank charter.

The application comes just days after Circle announced its plans to establish a national trust bank in the United States. If approved, Circle would become the second cryptocurrency company to hold such a charter, following Anchorage Digital Bank, which was conditionally approved by the OCC in 2021. The national bank charter would allow Ripple to offer a broader range of financial services and bring its digital assets under federal oversight.

Ripple's stablecoin, RLUSD, which is pegged to the US dollar, will also fall under the OCC's regulatory purview. Currently, RLUSD is regulated at the state level by the New York State Department of Financial Services. By seeking a national bank charter, Ripple aims to integrate its digital asset operations more closely with the traditional banking system, potentially enhancing trust and stability in the cryptocurrency market.

This strategic move by Ripple reflects a broader trend in the cryptocurrency industry, where companies are increasingly seeking regulatory clarity and legitimacy. By obtaining a national bank charter, Ripple can operate under a well-defined regulatory framework, which may attract more institutional investors and foster greater adoption of digital assets. The application also underscores the growing recognition of digital currencies as a legitimate part of the financial ecosystem, paving the way for further innovation and integration in the sector.