Ripple Seeks National Banking License for Stablecoin Integration

Ripple, a prominent blockchain-based payments firm, has taken a significant step towards integrating with traditional financial services by filing for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC). This move, announced on July 2, aims to extend the regulatory supervision of its stablecoin, Ripple USD (RLUSD), which is currently overseen by the New York Department of Financial Services (NYDFS).

By seeking a national banking license, Ripple aims to operate under federal laws, enabling it to provide cryptocurrency services across state lines. This would mark a significant milestone in Ripple's efforts to bridge the gap between digital assets and mainstream finance. The company's CEO, Brad Garlinghouse, emphasized the importance of this move, stating that it would provide both state and federal oversight, setting a new benchmark for trust in the stablecoin market.

In addition to the national banking license, Ripple's subsidiary, Standard Custody & Trust Company, has applied for a Federal Reserve master account. If approved, this account would give Ripple direct access to the US central banking system, allowing it to hold RLUSD reserves with the Fed. This move would enhance the security and transparency of RLUSD, reducing Ripple's reliance on commercial banks.

Garlinghouse noted that this access would allow Ripple to hold RLUSD reserves directly with the Fed and provide an additional layer of security to future-proof trust in RLUSD. This strategic move comes at a time when stablecoin issuers are increasingly seeking federal oversight, driven by expected regulatory demands under the GENIUS Act stablecoin legislation, which recently passed the Senate. The legislation aims to provide a clear regulatory framework for stablecoins and crypto market structure.

Ripple's application for a national banking license and a Federal Reserve master account is a strategic step towards expanding its crypto financial services. It would allow the company to offer additional crypto-related services in the future, further integrating digital assets with traditional financial services. This development underscores Ripple's commitment to compliance and its efforts to build trust in the stablecoin market.

RLUSD, which holds a $469 million market cap, is backed by dollar reserves and Treasurys and was launched in late 2024. Jack McDonald, Ripple’s stablecoin lead, described the dual regulatory approach as setting “a new bar for transparency and compliance in the stablecoin market.”

Ripple's move places it among a growing cohort of crypto companies seeking bank charters in anticipation of the GENIUS Act. Anchorage Digital remains the only crypto-native firm with a federal bank license, while Circle—issuer of stablecoin USDC—has also applied. Ripple’s strategy reflects a broader push toward institutional-grade infrastructure as stablecoins move closer to regulatory mainstream acceptance.