Ripple’s Bold Move: Pursuing U.S. Banking License as Regulations Tighten

Ripple's playing chess while others play checkers—the blockchain giant just signaled plans to grab a U.S. banking license amid the regulatory scrum.

Why it matters: This isn't just compliance theater. Securing a banking charter would let Ripple legally bypass the SEC's 'regulation by enforcement' strategy that's been choking crypto innovation since 2020.

The twist: Banking licenses don't come cheap—just ask Credit Suisse. Ripple's sitting on $25B in XRP reserves, but regulators love making deep-pocketed firms jump through expensive hoops (bonus points if the paperwork generates billable hours for lawyers).

Bottom line: If successful, this could flip Ripple from regulatory target to industry gatekeeper—proving once again that in finance, the best way to beat the system is to buy your way into it.

Ripple Labs, a blockchain-based cross-border company, has filed for a national banking license with the United States Office of the Comptroller of the Currency (OCC). Ripple’s CEO Brad Garlinghouse confirmed that the company is seeking a national banking charter, to enhance its regulatory compliance.

Garlinghouse also noted that Standard Custody, a Ripple subsidiary, applied for a Fed Master Account. As a result, Standard Custody will hold $RLUSD reserves directly with the Fed.

“Ripple always has and will continue to build trusted, battle-tested, and secure infrastructure. In a $250B+ market, RLUSD stands out for putting regulation first, setting the standard that institutions expect,” Garlinghouse noted.