Ripple Seeks National Banking License for Expanded US Operations

Ripple, the San Francisco-based blockchain company, has taken a significant step towards expanding its operations by applying for a national banking license in the U.S. The firm submitted its application to the Office of the Comptroller of the Currency (OCC) on Wednesday, aiming to secure federal-level approval that would grant it broader authority to operate across state lines.

Ripple is renowned for its blockchain-based payment network and RLUSD, a U.S. dollar-pegged stablecoin currently regulated at the state level by the New York Department of Financial Services. If Ripple's application is approved, RLUSD would come under the supervision of the OCC, marking a substantial increase in regulatory clarity for the stablecoin. Jack McDonald, Ripple’s SVP of stablecoins, emphasized that this dual regulatory status would establish a precedent for compliance in the stablecoin sector, providing deeper transparency and risk management assurances to both users and regulators.

Stablecoins, which maintain their value through reserves such as cash and short-term Treasuries, have faced increased scrutiny as governments worldwide consider new digital currency frameworks. Ripple's move to obtain a national banking license could pave the way for additional crypto-based financial services in the future, indicating that the company's ambitions extend beyond cross-border payments.