Ripple Seeks National Banking License for Stablecoin Operations

Ripple has filed for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC), a move that could give it direct federal oversight over its stablecoin operations and open the door to offering broader crypto-related services. The application was filed on Wednesday and comes as federal regulators under the Trump administration have taken a more open stance toward the crypto sector, including steps to let national banks handle crypto on behalf of clients.

“If approved, we’d be under both federal and state supervision — a first for any stablecoin issuer,” Ripple CEO Brad Garlinghouse posted on X. Ripple’s dollar-pegged stablecoin, RLUSD, launched earlier this year. In a related step, Ripple subsidiary Standard Custody & Trust has also applied for a Federal Reserve master account, which would allow it to hold stablecoin reserves directly with the central bank.

Ripple’s push follows a similar move by Circle earlier this week. The issuer of the USDC stablecoin also applied for a national banking license, which would allow it to custody reserves and crypto assets for institutional clients without relying on third-party banks. The application came on the heels of Circle’s highly successful public debut. A federal license would place Circle directly under the OCC’s supervision — an unusual position for a crypto firm and one that could put it ahead of rivals in regulatory preparedness.

Paxos, another stablecoin issuer, received preliminary conditional approval for a federal bank charter from the U.S. Office of the Comptroller of the Currency (OCC) in 2021. This move by Ripple and Circle reflects a broader trend among crypto-native firms seeking to gain bank-like status, with companies like BitGo and Coinbase also exploring similar regulatory pathways. The push for a national banking license by Ripple is aimed at enhancing its regulatory compliance and bringing its stablecoin, RLUSD, under the scrutiny of the OCC. This regulatory approval would allow Ripple to connect digital assets with traditional financial services more seamlessly, potentially paving the way for broader adoption and integration of cryptocurrencies in the mainstream financial system.

By seeking a national banking license, Ripple aims to strengthen its position in the market and ensure that its operations are in line with federal regulations. This move is expected to have a positive impact on the company's ability to offer financial services and products that comply with regulatory standards, thereby enhancing trust and confidence among users and investors. The push for a national banking license by Ripple and Circle reflects a broader shift in the cryptocurrency industry towards greater regulatory compliance and integration with traditional financial systems. As more crypto firms seek to operate within a regulated framework, the industry is likely to see increased stability and legitimacy, which could attract more mainstream adoption and investment. The application by Ripple and Circle for national banking licenses is a significant step in this direction, and it remains to be seen how other crypto firms will respond to this trend.