Ripple Files for U.S. Banking License: Crypto’s Next Big Leap?

By Emir Abyazov

eToro

Ripple Labs is applying for a U.S. banking license, a move that could dramatically change its status in the financial ecosystem. CEO Brad Garlinghouse confirmed on social network X that the company has applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national banking charter.

If the license is approved, he said, it would be “a new (and unique!) benchmark for trust in the stablecoin market,” as the company would be under federal and state oversight.

Ripple’s application comes just two days after Circle Internet Group, the issuer of USDC, the second-largest stablecoin, also applied to the OCC. Circle seeks to create a national trust bank to manage its stablecoin reserves.

Both decisions are related to the U.S. Senate’s passage of a stablecoin regulation bill, the GENIUS Act. The document establishes standards for issuing tokens pegged to the U.S. dollar and places oversight of major stablecoin issuers under the OCC’s jurisdiction.

As of now, Anchorage Digital remains the only cryptocurrency company with a national banking charter.

Application for a master account with the Fed

Garlinghouse did not stop with a banking license. Ripple has also applied for a master account with the U.S. Federal Reserve, which would give the company access to the U.S. central banking system.

“This access will allow us to hold RLUSD reserves directly with the Fed and provide an additional layer of security for the future credibility of RLUSD,” the Ripple CEO explained.

Ripple USD (RLUSD), the company’s stablecoin, is already regulated by the New York Department of Financial Services. However, gaining federal oversight would significantly elevate its market status.

Congress is changing course

“Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in,” Garlinghouse added, alluding to the conspiracy theory that the Biden administration sought to cut off the crypto industry from the financial system.

Indeed, the atmosphere in Washington is changing. Whereas cryptocurrency companies used to face regulatory uncertainty and outright hostility, now, clear paths for integration into the traditional financial system are emerging.

Source:: Ripple Files for U.S. Banking License: Crypto’s Next Big Leap?