Ripple Labs is taking a major step toward cementing its position in the regulated financial ecosystem by applying for a national banking license in the United States. The move follows similar efforts by other crypto firms, such as Circle Internet Group, as the industry looks to integrate more deeply with traditional finance and comply with emerging regulatory frameworks.
Ripple seeks OCC approval
Ripple CEO Brad Garlinghouse confirmed on Wednesday that the company has submitted an application to the Office of the Comptroller of the Currency (OCC) for a national bank charter.
“True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC,” Garlinghouse wrote on X (formerly Twitter).
If approved, the license would place Ripple under both federal and state oversight, further boosting trust in its operations and its stablecoin product, Ripple USD (RLUSD), which is already regulated by the New York Department of Financial Services (NYDFS).
Following Circle’s lead
Ripple’s announcement comes just two days after Circle, the issuer of USDC, the world’s second-largest stablecoin, applied to the OCC to form a national trust bank.
Both moves come as the US Senate passed the GENIUS Act, a bill that defines rules and oversight for stablecoin issuers, placing large players under OCC jurisdiction.
Circle CEO Jeremy Allaire said earlier this week that the company is taking “proactive steps” to align with the emerging U.S. regulatory environment for dollar-backed stablecoins.
At present, Anchorage Digital remains the only crypto company to hold a U.S. national bank charter.
Application for Federal Reserve access
In addition to the banking license, Ripple has also applied for a Master Account with the Federal Reserve, which would allow it to directly hold RLUSD reserves with the U.S. central bank.
“This access would allow us to hold RLUSD reserves directly with the Fed and provide an additional layer of security to future-proof trust in RLUSD,” Garlinghouse noted.
Ripple made this application through Standard Custody, a crypto custody firm it acquired in February 2024.
XRP climbs on the news
The announcement spurred buying in XRP, Ripple’s native token. XRP gained over 3%, rising from $2.22 to a high of $2.27 before settling around $2.24, according to CoinGecko.
The move signals growing confidence among investors that Ripple is aligning itself with U.S. regulations and strengthening its long-term prospects.
Context
Ripple’s bid comes as Congress pushes for clearer rules around crypto and as banks, once wary, appear more open to partnerships with digital asset firms. Garlinghouse referenced this shift in sentiment, noting that it contrasts with past periods when regulators allegedly sought to restrict crypto’s access to the financial system.
With these steps, Ripple joins the emerging trend of crypto firms seeking legitimacy and stability through formal banking licenses — a development that could reshape how crypto and traditional finance interact.