Ripple Seeks U.S. Banking License and Federal Reserve Master Account

• Ripple is applying for a U.S. banking license and a Federal Reserve master account.

• The move follows Circle’s similar efforts to comply with stablecoin regulations.

• XRP gained over 3 percent after the announcement and briefly hit $2.27.

Crypto firm Ripple Labs is pursuing a national bank charter in the U.S. This follows Circle’s move, signaling growing crypto integration with traditional finance. Ripple CEO Brad Garlinghouse confirmed the application on X, noting the firm’s ongoing focus on compliance and oversight.

National Bank Charter Pursued

Ripple has filed for a national bank license with the Office of the Comptroller of the Currency (OCC). The goal is to secure federal and state supervision. Its stablecoin, Ripple USD (RLUSD), is regulated by the New York Department of Financial Services. Garlinghouse said an approved charter would set a new level of trust in the stablecoin sector.

Ripple is also applying for a Federal Reserve Master Account via its subsidiary, Standard Custody. If approved, the firm could hold RLUSD reserves directly with the Fed. Garlinghouse noted that this would further secure funds and deepen institutional trust.

The Master Account request follows Ripple’s acquisition of Standard Custody in February 2024. Ripple emphasized that this move aligns with ongoing congressional efforts to clarify crypto regulations, contrasting past restrictions under the former administration’s handling of crypto policy.

Following Circle’s Move

Ripple’s announcements come just two days after Circle filed for an OCC charter to manage reserves for its USDC stablecoin. Jeremy Allaire, Circle’s CEO, highlighted that the move aligns with emerging U.S. regulatory standards for dollar-denominated tokens.

The U.S. Senate recently passed the GENIUS Act, which introduces secure frameworks for stablecoin issuance. The legislation designates the OCC to oversee major stablecoin providers.

Anchorage Digital remains the only crypto firm with an existing national bank charter. Ripple and Circle’s efforts suggest an expanding trend toward formal banking status for crypto-native firms.

The news boosted XRP, Ripple’s native token, which climbed more than 3% daily. XRP reached $2.27 before settling at about $2.24, based on CoinGecko data. This increase came shortly after Garlinghouse shared the application news.

By seeking direct oversight and federal ties, Ripple aims to enhance its credibility. A national charter and Fed account could offer RLUSD users improved safety. They also signal a broader mainstream crypto adoption drive.

Ripple and Circle appear keen to merge crypto innovation with established financial frameworks. Their efforts could pave the way for regulated stablecoin offerings, bridging web3 and traditional banking.