Ripple Applies for US Banking License: Major Step in Cryptocurrency Legitimization
Key Takeaways
- Ripple applies for national banking license with the US Office of the Comptroller of the Currency (OCC)
- Following Circle’s lead in seeking official oversight from banking regulators
- Important context: The recently passed GENIUS Act mandates strict oversight of stablecoin issuers
- Positive impact: XRP surged over 3% following the announcement
Cryptocurrency firm Ripple Labs took a big step forward by applying to become a bank to conduct business in the US. The action follows hot on the heels of a similar attempt by Circle Internet Financial—the firm behind USDC—with both indicating a trend for cryptocurrency firms to fit into current financial regulation and establish themselves as institutions.
Ripple Officially Applies for Banking License
CEO Brad Garlinghouse formally confirmed Ripple’s submission of a national bank charter application to the Office of the Comptroller of the Currency (OCC). In his statement, Garlinghouse emphasized that this strategic move aligns with Ripple’s eight-year track record of proactive regulatory compliance, including ongoing engagements with global financial authorities.
According to Garlinghouse, if the license is approved, this will establish a “new standard of trust in the stablecoin market.” The company will be subject to both federal and state oversight, in addition to the current management by the New York Department of Financial Services for the RLUSD stablecoin.
The Race Following Circle
Ripple’s application follows Circle’s move by just two days, with the USDC issuer seeking to establish a nationally chartered trust bank under OCC oversight. This strategic sequencing occurred against the backdrop of the recently passed GENIUS Act by the US Senate.
The GENIUS Act establishes comprehensive standards for USD-pegged stablecoins and designates the OCC as the primary federal regulator for major issuers. Circle CEO Jeremy Allaire characterized his company’s filing as taking “proactive steps” to align with the new regulatory requirements. Notably, Anchorage Digital remains the sole cryptocurrency firm currently holding a US national banking charter.
Fed Master Account Ambitions
Concurrently with its banking charter application, Ripple submitted a request for a Federal Reserve Master Account through its subsidiary Standard Custody & Trust Company (acquired February 2024). Approval would grant direct access to Federal Reserve payment systems.
Garlinghouse explained: “This would enable us to hold RLUSD reserves directly at the Fed, adding a critical security layer to bolster long-term confidence in RLUSD.” He highlighted regulatory progress: “Congress is advancing clear frameworks while financial institutions now engage constructively – a decisive shift from the Operation Chokepoint 2.0 era.”
Ripple filed the account application through Standard Custody, a cryptocurrency custody company they acquired in February 2024.
Positive Market Impact
News of the banking license application had a positive impact on XRP’s price. The token of the XRP Ledger blockchain – the platform that Ripple Labs uses for its products – surged 3.2% during the day, trading at $2.24.
XRP’s price began rising late in the day and reached a 24-hour peak of $2.27 before making slight adjustments after the initial price surge.
These parallel moves by Ripple and Circle signal cryptocurrency’s accelerating transition into a legitimization phase, facilitated by structured regulatory frameworks and increasingly receptive oversight approaches.
