XRP News Today: Ripple Seeks U.S. Banking License Boosting RLUSD Trust 3.2%

Ripple, the company behind the XRP cryptocurrency and the RLUSD stablecoin, has applied for a U.S. banking license, aiming to enhance its regulatory stance and integrate federal oversight for its stablecoin operations. This move, announced in July 2025, seeks to establish a new regulatory standard for the stablecoin industry by incorporating significant state and federal regulatory oversight. Ripple plans to work with Standard Custody & Trust Company to achieve this goal, which could potentially boost trust in its USD-backed stablecoin, RLUSD, in a competitive market.

Ripple's CEO, Brad Garlinghouse, emphasized the company's commitment to compliance, stating that if approved, Ripple would have both state and federal oversight, setting a unique benchmark for trust in the stablecoin market. This initiative comes at a time when regulatory focus on stablecoins is intensifying, prompting Ripple to seek dual oversight to ensure compliance with all necessary standards. The potential approval of Ripple's application could mark a significant milestone in the company's efforts to bridge traditional finance with the cryptocurrency ecosystem.

Ripple's application for a national banking license is part of its broader ambition to integrate cryptocurrency with traditional financial systems. By seeking a Fed master account, Ripple aims to facilitate seamless transactions between traditional banking and cryptocurrency platforms. This integration could open new avenues for institutional investors and financial institutions to engage with Ripple's services, further boosting the adoption of its stablecoin. The move positions Ripple favorably among competitors like USDC and could change future component dynamics in this financial sector.

Ripple's banking license application immediately influenced market sentiment, as XRP's price rose approximately 3.2%. The proposed regulatory shift could provide greater transparency and foster institutional trust, pivotal factors in the stablecoin market. However, key regulatory entities have yet to make official comments on the development. The move positions Ripple favorably among competitors like USDC and could change future component dynamics in this financial sector.

Previously, Circle, the issuer of USDC, pursued similar regulatory integrations, enhancing transparency and institutional acceptance. Historical trends indicate that increased regulation might boost institutional participation and market confidence. Based on Circle's experience, Ripple’s efforts may lead to strengthened market positioning and heightened interest from financial institutions, paving the way for broader stablecoin adoption.

Ripple's pursuit of a national banking license is not just about regulatory compliance; it is also a strategic move to boost the adoption and trust in its RLUSD stablecoin. By becoming a regulated stablecoin issuer, Ripple aims to align with upcoming regulations that could reshape how stablecoin issuers are governed. This proactive approach could position Ripple as a leader in the stablecoin market, providing a stable and compliant alternative to other cryptocurrencies.