Stablecoin News – On July 2, 2025, Ripple Labs, a San Francisco-based blockchain payments firm, announced it has applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC), a move that underscores the cryptocurrency industry’s growing alignment with traditional finance. Ripple CEO Brad Garlinghouse confirmed the application via a post on X (Twitter), stating that the license, if approved, would place Ripple’s U.S. dollar-pegged stablecoin, RLUSD, under both federal and state oversight, setting “a new benchmark for trust in the stablecoin market.” The company also applied for a Federal Reserve Master Account through its subsidiary, Standard Custody & Trust Company, to hold RLUSD reserves directly with the Fed, enhancing security and transparency.
Ripple’s application follows a similar move by Circle, issuer of the USDC stablecoin, which filed for a national trust bank charter on June 30. Both firms are positioning themselves to comply with the GENIUS Act, a U.S. Senate-passed bill that mandates banking charters for stablecoin issuers to ensure consumer protection and financial stability. The Act, now under review in the House, requires 1:1 reserve backing with cash or U.S. Treasuries, a standard Ripple aims to meet with RLUSD, launched in December 2024 with a current market cap of approximately $470 million.
The OCC application, if approved, would allow Ripple to operate as a federally regulated bank, bypassing intermediary banks for faster, cheaper payments and offering services like custody and settlement.
Jack McDonald, Ripple’s Senior Vice President of Stablecoins, noted that dual oversight from the OCC and New York Department of Financial Services (NYDFS), which already regulates RLUSD, would enhance transparency and compliance. This move comes amid a broader trend, with firms like Fidelity Digital Assets and BitGo also pursuing banking charters, though Anchorage Digital remains the only crypto firm with a federal charter.
The application has sparked market optimism, with XRP, Ripple’s native token, rising 3-4% to $2.23-$2.30 on July 3. Some predict XRP could reach $3, citing the license as a catalyst for institutional adoption. However, the approval process is lengthy, often taking over a year, involving rigorous scrutiny of business plans and management. Regulatory hurdles, such as Custodia Bank’s rejected Fed Master Account application, suggest challenges ahead.
Ripple’s pursuit reflects the crypto industry’s shift toward regulatory legitimacy after years of scrutiny, amplified by events like the FTX collapse. Critics argue that federal oversight may limit decentralization, but supporters, including Garlinghouse, see it as a step to bridge crypto and traditional finance. As Congress advances stablecoin legislation, Ripple’s bid could redefine its role in global payments, though success hinges on navigating a complex regulatory landscape.
