The US crypto sector is undergoing significant transformation. Following Circle's recent move, industry heavyweight Ripple has now applied for a national banking charter, signaling the sector's ambition to integrate with traditional finance.
According to the Wall Street Journal, Ripple submitted its application to the Office of the Comptroller of the Currency (OCC) on Wednesday. Approval would designate the OCC as the primary regulator for Ripple's planned stablecoin, RLUSD. The company may also offer additional crypto services under the charter.
CEO Brad Garlinghouse expressed enthusiasm on X: "Staying true to our compliance roots, Ripple seeks a national bank charter. Approval would set a new standard for trust in the stablecoin market, combining state (NYDFS) and federal oversight."
Multi-Layered Strategy
Ripple's subsidiary, Standard Custody & Trust Company, has also applied for a Master Account with the Federal Reserve. This would allow Ripple to hold RLUSD reserves directly with the central bank—a strategic advantage enhancing credibility.
Direct Fed access elevates stablecoins from "private crypto assets" to quasi-government-backed instruments, giving Ripple a competitive edge over peers reliant on traditional banking systems.
FAQs
Why is Ripple applying for a banking charter?
The charter would legitimize its operations, expand service offerings, and strengthen oversight for its stablecoin.
How does a Master Account benefit Ripple?
It enables direct central bank reserve holdings, reducing counterparty risk and boosting institutional trust.
What’s the impact on XRP?
Despite the news, XRP’s price showed no significant movement, reflecting the market's focus on long-term regulatory integration.
👉 Explore how banking charters reshape crypto
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Keywords: Ripple, banking charter, stablecoin, OCC, Federal Reserve, crypto regulation, RLUSD, XRP
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