Ripple Seeks U.S. Trust Bank Charter to Expand Digital Asset Services

Ripple has filed for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC), aiming to establish Ripple National Trust Bank, a limited-purpose entity focused on B2B financial services. The bank will be fully owned by Ripple Labs and based in New York, with its initial board composed of five organizers, including Ripple’s Chief Legal Officer, Stuart Alderoty. The application outlines plans to manage reserves for Ripple’s stablecoin, RLUSD, and offer fiduciary services aligned with digital asset payments [1].

A key component of the application is Ripple’s request for a Federal Reserve master account. If approved, this would grant the company direct access to the Fed’s payments network, allowing it to settle transactions without intermediaries and significantly reduce operational costs. This move is seen as a strategic step toward integrating blockchain with traditional financial infrastructure, potentially streamlining cross-border payments and offering a scalable solution for businesses adopting digital assets [2].

The filing, which was made public through the release of Volume 1 of the application, does not explicitly mention XRP, the company’s native token. However, it confirms the trust bank’s integration with Ripple’s digital payment ecosystem. Observers speculate that XRP may still play a role in the broader strategy, though this remains unconfirmed in the current filings [3].

This initiative reflects a broader industry shift toward tokenization and the digitization of financial assets. By pursuing a federal charter, Ripple is positioning itself as a regulated infrastructure provider, mirroring a similar approach taken by stablecoin issuer Circle. The move aligns with Ripple’s long-term strategy to serve institutional clients and facilitate tokenized finance solutions, reinforcing its role in the evolving financial ecosystem [1].

The timing of the application coincides with the recent passage of the GENIUS Act, which has been hailed by Ripple’s CEO, Brad Garlinghouse, as a pivotal legislative development for financial innovation. The act is viewed as a step toward modernizing U.S. financial regulation and creating a more favorable environment for fintech and blockchain-based firms [4].

While the approval process could take several months, the mere filing of the application marks a significant milestone in Ripple’s journey toward mainstream financial acceptance. The company’s engagement with regulators signals a broader industry trend where compliance and innovation are becoming increasingly intertwined. This development may also set a precedent for other firms seeking to integrate blockchain technology into the traditional financial system [2].

Source: [1] Ripple Applies for U.S. Trust Bank License to Build Tokenized-Finance Platform (https://cryptodnes.bg/en/ripple-applies-for-u-s-trust-bank-license-to-build-tokenized-finance-platform/)

[2] Details Revealed About Ripple's Application to Establish a Limited-Purpose National Trust Bank (https://cryptonews.net/news/finance/31368365/)

[3] First Glimpses of Volume 1 of Ripple's OCC Banking Application (https://cryptonews.net/news/altcoins/31365952/)

[4] Ripple CEO Has a “Genius” Response to Dodd-Frank (https://www.thestreet.com/crypto/policy)