Ripple Applies for US Banking License After Circle
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Ripple is expanding its operations into banking to deepen its traditional finance ties.
This latest development was revealed by Ripple CEO Brad Garlinghouse, who confirmed on July 2 that the company is applying for a national bank charter from the U.S. Office of the Comptroller of the Currency (OCC). The announcement came two days after Circle disclosed its application.
https://twitter.com/WSJmarkets/status/1940451670623687077
Ripple and Circle Race to Comply Ahead of GENIUS Act Approval
If approved, Ripple’s national charter would place its stablecoin, Ripple USD (RLUSD), under both state supervision by the New York Department of Financial Services and federal regulation by the OCC.
That dual oversight aims to bolster market confidence by establishing a new and unique benchmark for trust in stablecoins.
Additionally, Ripple subsidiary Standard Custody & Trust applied for a Fed master account alongside an OCC filing, according to Garlinghouse. This allows RLUSD reserves to be held directly with the Fed, boosting security and trust.
Similarly, Circle’s trust bank would oversee USDC reserves directly, allowing it to manage its own collateral and hold crypto assets on behalf of institutional clients.
These moves follow the progress of the GENIUS Act in Congress, which empowers the OCC to oversee major stablecoin issuers under a national framework. The pending legislation aims to clarify rules for dollar-pegged tokens, driving crypto firms to secure charters pre-finalization.
Currently, Anchorage Digital remains the only crypto company with an existing national bank charter, giving it a head start on offering bank-like services.
By contrast, Ripple and Circle now position themselves to offer a broader array of crypto services, ranging from custody to payment processing, under explicit federal authority.
$XRP, the native token of Ripple’s ledger, rose over 3% on news of the charter application, trading around $2.24.
Market participants view the regulatory push as a sign that major crypto players intend to align closely with U.S. banking rules, reducing uncertainty and enhancing institutional adoption.
Are Stablecoins Evolving Into Core Financial Infrastructure?
A clearer regulatory framework under the GENIUS Act is intensifying the U.S. stablecoin race, with these tokens poised to bridge traditional finance and cryptocurrency.
Ripple and Circle aren’t the only ones making moves.
Beyond U.S. shores, South Korea paused its CBDC rollout to fast-track Korean won-pegged stablecoins under the Digital Asset Basic Act.
Regulators now require issuers to maintain a capital of 500 million Korean won, meet reserve management standards, and enforce consumer protection rules.
Eight major Korean banks have already formed a consortium to launch a KRW-backed token by next year.
In East Africa, Tether signed an MoU with Zanzibar’s e-Government Authority to boost blockchain literacy for nearly two million residents.
The partnership will launch public workshops and academic programs, with Tether willing to explore USDT and XAUT integration into Zanzibar’s Zanmalipo gateway.
Success could make Zanzibar the first government to accept stablecoins for public services, boosting financial inclusion and reducing banking dependence.
As crypto firms pursue OCC charter, governments and legacy financial players worldwide align stablecoin strategies to unlock faster payments, enhance asset custody, and expand financial inclusion.
Stablecoins are rapidly moving from experimental assets to core infrastructure across multiple jurisdictions.
