Blockchain development company Ripple Labs, creator of XRP and the upcoming RLUSD stablecoin, is following stablecoin issuer Circle's lead by applying to become a licensed banking institution.
Ripple's Dual Regulatory Strategy
Ripple CEO Brad Garlinghouse announced on X platform that the company is:
- Applying for a national bank charter with the Office of the Comptroller of the Currency (OCC)
- Seeking a Federal Reserve Master Account through subsidiary Standard Custody
This would subject Ripple to both:
- State-level oversight
- Federal regulation
"With Congress now establishing clear frameworks and banks becoming active participants (unlike during 'Operation Chokepoint 2.0'), this access would let us hold RLUSD reserves directly at the Fed—adding security and strengthening long-term trust."
— Brad Garlinghouse
Market Reaction and Competitive Landscape
Following the announcement:
- XRP price surged 2.5% to $2.26
- Circle confirmed parallel efforts to establish the "First National Digital Currency Bank" as a national trust bank
👉 Discover how top crypto companies navigate banking regulations
Regulatory Context
These developments coincide with:
- The Senate passing the GENIUS Act establishing stablecoin standards
- OCC being designated as primary regulator for major stablecoin issuers
- Anchorage Digital remaining the only crypto company with a national bank charter
FAQ Section
Q: What advantages would a banking license give Ripple?
A: Direct Fed access for reserve management, enhanced RLUSD credibility, and ability to offer institutional custodial services.
Q: How does this affect XRP holders?
A: Regulatory clarity could improve institutional adoption, though XRP and RLUSD serve distinct purposes.
Q: What's the timeline for approval?
A: Banking licenses typically require 12-18 months for review, but accelerated processes may apply given the GENIUS Act.
Q: How does Circle's approach differ?
A: Circle seeks trust bank status specifically for digital currency, while Ripple pursues broader banking capabilities.
👉 Explore the future of regulated stablecoins
Industry Implications
The race between Ripple and Circle highlights:
- Growing crypto-banking convergence
- Demand for Fed payment system access
- Importance of regulatory first-mover advantage
As regulatory frameworks solidify, these developments could reshape how blockchain companies interface with traditional finance—with stablecoins at the center of this transformation.