Ripple Seeks National Banking Charter for RLUSD Stablecoin

Ripple Labs has submitted an application for a national banking charter in the United States, aiming to bring its RLUSD stablecoin under the direct oversight of the Office of the Comptroller of the Currency. This strategic move would allow Ripple to hold RLUSD reserves directly with the Federal Reserve, potentially giving it a competitive advantage in the $150 billion stablecoin market.

Ripple's application seeks to transfer RLUSD reserves from commercial banks to the Federal Reserve, enhancing oversight and regulatory credibility. This initiative aligns with the broader industry trend of tightening stablecoin regulations. RLUSD, launched in late 2024, has achieved a market capitalization of approximately $470 million, positioning it as a growing competitor in the stablecoin sector.

CEO Brad Garlinghouse confirmed the application, highlighting that RLUSD already operates under New York's financial regulators. The national charter would extend regulatory coverage to include federal oversight through the OCC, positioning RLUSD as a serious contender in institutional markets. This move would enable Ripple to eliminate third-party banks, providing faster settlement times and improved transparency for RLUSD transactions. Weekend and overnight operations would continue seamlessly, unlike traditional banking systems that shut down during off-hours.

Ripple plans to use its subsidiary, Standard Custody & Trust Company, for the Fed master account application. Moving reserves from commercial banks to the central bank offers stronger protection and oversight. For a stablecoin competing against established players, this regulatory foundation could prove decisive. The timing of Ripple's application coincides with broader industry consolidation around compliance, as Circle recently filed for a national trust bank license to create a fully regulated institution focused on digital dollars and tokenized assets.

Anchorage Digital currently stands as the only crypto firm with a federal charter. Ripple's application puts it in direct competition to become the second federally chartered cryptocurrency company. The GENIUS Act gaining momentum in the Senate signals that stablecoin regulation is moving from hypothetical to mandatory. Standards around reserves, disclosures, and investor protection are already being drafted. Companies that fail to meet these requirements risk being shut out of institutional markets. Ripple's proactive approach demonstrates recognition that regulatory compliance will separate winners from losers in the stablecoin space.

While RLUSD's market capitalization of $470 million falls short of challenging top-tier stablecoins, it establishes Ripple as a legitimate player in the sector. A federal charter could provide the credibility needed to attract banks, payment processors, and institutional investors. The charter would enable Ripple to expand beyond RLUSD into cross-border payments and digital asset custody services, all under federal supervision, matching the regulatory framework of traditional banks. This comprehensive approach could appeal to institutions seeking regulatory certainty.

Approval for Ripple's charter is not guaranteed despite its strategic positioning. The charter and Fed account require approval from multiple agencies through a months-long review process. Ripple also faces ongoing legal challenges related to XRP that could influence regulators' decision-making. However, if the license is granted, Ripple would operate one of the strongest compliance frameworks in the stablecoin market. This regulatory foundation could accelerate institutional adoption of RLUSD significantly. The company's banking play represents a bet that regulatory compliance will drive the next phase of stablecoin growth.

Ripple's banking charter application signals the stablecoin industry's evolution toward full regulatory compliance. Only companies prepared to operate within traditional banking frameworks will achieve institutional scale. The industry watches closely as Ripple's federal banking license could determine whether RLUSD becomes a major competitor to established stablecoins.