tl;dr
Ripple has applied for a national banking license from the U.S. Office of the Comptroller of the Currency, aiming to operate under federal banking regulations. Ripple recently launched its regulated stablecoin, Ripple USD (RLUSD), valued at $440 million, with 14 million new tokens minted recently. R...
Ripple, the San Francisco-based enterprise blockchain company, has taken a significant step by applying for a national banking license from the U.S. Office of the Comptroller of the Currency (OCC). This move would allow Ripple to operate similarly to a traditional bank under federal banking regulations, positioning it firmly within mainstream finance.
In December, Ripple launched its highly regulated stablecoin, Ripple USD (RLUSD), which currently has a market capitalization of $440 million according to the latest attestation report. Just recently, 14 million RLUSD tokens were minted at the RLUSD Treasury, signaling ongoing growth and activity in this sector.
Before its launch, RLUSD received approval from the New York Department of Financial Services (NYDFS), granting it strong state-level oversight. With the new application for a national banking license, RLUSD could become one of the first stablecoins to operate under both state and federal supervision. Ripple CEO Brad Garlinghouse described this potential dual oversight as a "unique benchmark" for the stablecoin.
Additionally, Ripple’s subsidiary, Standard Custody, has applied for a Federal Reserve master account. This account would enable Ripple to hold the reserves backing RLUSD directly with the Federal Reserve, enhancing transparency and trustworthiness.
Ripple's pursuit of a banking license follows a trend among cryptocurrency firms aiming to bridge the gap between digital assets and traditional finance. Earlier this year, Circle, another prominent stablecoin issuer, applied for a national trust bank charter with the OCC. Similarly, Coinbase and Paxos are considering banking licenses to solidify their regulatory standing.
Currently, Anchorage Digital stands as the only cryptocurrency company to have successfully secured a national trust bank charter, setting a precedent for others like Ripple to follow. As Ripple advances through this application process, the landscape for regulated stablecoins and crypto banking continues to evolve rapidly, hinting at a future where digital assets operate seamlessly within the federal regulatory framework.