Ripple Seeks National Banking License Amid Crypto Regulatory Push

Ripple, a prominent blockchain-based payments firm closely associated with the XRP cryptocurrency, has made a significant regulatory move. The company announced on Wednesday that it has filed an application with the U.S. Office of the Comptroller of the Currency (OCC) for a national banking license. This step follows substantial progress in its ongoing legal battle and aligns with a broader trend among stablecoin issuers seeking federal oversight.

The national banking license would enable Ripple to act as a custodian for its own reserves under federal banking regulations. This development is particularly noteworthy given the current administration's crypto-friendly stance. Ripple's application follows a similar move by Circle, indicating a growing interest among stablecoin issuers to operate under federal regulations as U.S. legislation to regulate stablecoins and crypto market structure advances.

Ripple submitted its application to the OCC on Wednesday. The company’s chief executive officer, Brad Garlinghouse, announced the news on the social media platform X (formerly known as Twitter). Garlinghouse emphasized Ripple's long-standing commitment to compliance, stating that the application for a national bank charter would provide both state and federal oversight, setting a new benchmark for trust in the stablecoin market. This dual oversight would be unique, as Ripple is already regulated by the New York Department of Financial Services (NYDFS).

The license would allow Ripple to extend its cryptocurrency services and operate across state lines under federal laws. Ripple is the issuer of the $440 million dollar-pegged RLUSD stablecoin, which is regulated by the NYDFS. Earlier this week, Ripple subsidiary Standard Custody & Trust Company applied for a Federal Reserve master account. This account would enable the firm to hold RLUSD’s dollar reserves directly with the US central bank, thereby enhancing security and transparency.

Ripple's move comes just two days after its rival stablecoin issuer, Circle, confirmed its own application to secure a national bank charter. Anchorage Digital is currently the only crypto company with such a bank charter. Stablecoin issuers are seeking bank charters partly due to expected regulatory demands under the GENIUS Act stablecoin legislation that recently passed the Senate. President Trump has urged the House to pass this legislation swiftly so that he can sign it into law.

If Ripple secures the national trust bank charter, it is likely that the San Francisco-based firm will offer additional crypto-related services in the future. This development could further solidify Ripple's position in the cryptocurrency market and enhance its regulatory compliance, potentially attracting more institutional investors and partners.