Ripple Seeks National Trust Bank Charter to Regulate Stablecoin and Expand Crypto Infrastructure

Ripple Labs has submitted an application for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC), signaling a major strategic shift toward regulated operations in the crypto space [1]. The application, now publicly accessible in Volume 1, outlines Ripple’s intent to regulate its stablecoin, RLUSD, and develop a secure infrastructure for tokenized finance. This move aligns with broader industry trends, as only 5% of stablecoin issuers held similar charters as of 2023 [1].

The charter application omits Ripple’s native cryptocurrency, XRP, a deliberate choice likely aimed at streamlining the regulatory approval process. A 2024 MIT Sloan paper notes that such segmentation can improve approval odds in cautious regulatory environments [1]. Ripple’s application is structured around business-to-business (B2B) operations, excluding consumer-facing activities like lending or deposit-taking. This strategic focus allows Ripple to avoid obligations under the Community Reinvestment Act (CRA), reducing regulatory burden while maintaining operational flexibility [1].

The proposed entity, Ripple National Trust Bank, will operate as a wholly-owned subsidiary, leveraging blockchain technology for custody and payment services. RLUSD reserves will be managed through another subsidiary, Standard Custody & Trust Company. Notably, the application includes a sealed business plan, raising speculation about future moves such as an initial public offering (IPO)—a common strategy for companies preparing for public market entry [1].

Ripple has also strengthened its leadership with seasoned executives, such as Tim Keaney, former Vice Chair of BNY Mellon, who brings traditional banking expertise to the firm. If approved, the charter could grant Ripple access to the Federal Reserve system, enabling it to become a key player in liquid financial infrastructure and facilitating deeper integration between traditional finance and crypto markets [1].

The application reflects a broader trend in the fintech sector, where innovation increasingly occurs within established regulatory frameworks. FDIC data shows a 70% decline in new bank formations since 2008, pushing firms like Ripple to explore alternative paths to legitimacy [1].

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[1] https://coinmarketcap.com/community/articles/688dbe4ea575141c7544caf6/