Ripple has officially applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC), seeking federal regulatory oversight for its stablecoin RLUSD. CEO Brad Garlinghouse confirmed the application, stating it would establish "a new benchmark for trust" through dual supervision under both existing New York state regulations and federal compliance frameworks. This strategic move aims to enhance institutional confidence in RLUSD by aligning its operations with traditional banking standards.
Concurrently, Ripple's subsidiary Standard Custody & Trust Company applied for a Federal Reserve master account, which would enable direct holding of RLUSD reserves with the central bank. This infrastructure upgrade promises improved reserve security and operational control for the dollar-pegged stablecoin, which currently holds a $469 million market cap. The application follows Circle's similar bid days earlier, signaling an industry trend toward federal licensure amid pending GENIUS Act stablecoin legislation recently passed by the Senate.
Ripple plans to expand crypto financial services through this federally regulated banking platform, potentially increasing RLUSD's competitiveness against market leaders Tether ($158B) and USDC ($62B). The development coincides with a 5% intraday price surge for XRP—Ripple's native cryptocurrency—to $2.26, reflecting market optimism about the company's regulatory positioning.