Ripple Makes Power Play: Files for US Banking License in Bold Regulatory Gambit

Ripple just dropped a regulatory bombshell—the crypto payments giant has officially applied for a US banking charter. This isn't just paperwork; it's a strategic nuclear option against the SEC.

Why it matters: A banking license would let Ripple legally issue stablecoins, process cross-border payments, and hold digital assets on behalf of clients. All while giving the middle finger to Gary Gensler's enforcement regime.

The irony? Banks hate crypto—until they need the technology to modernize their creaky SWIFT systems. Ripple's move proves the old guard either adapts or gets disrupted.

One thing's certain: Wall Street's compliance officers just got 37 new gray hairs.

Ripple seeks further proof of RLUSD reliability

The co-founder and CEO of Ripple, Brad Garlinghouse, reiterated the backing of RLUSD as one of the main motivators to seek a bank license. Ripple seeks a national bank charter from the OCC, meaning compliance with both state and federal oversight. 

Garlinghouse recalled Ripple also sought out a Fed Master Account, meaning RLUSD reserves could also be stored directly with the Fed. 

True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.

Earlier in the week via… https://t.co/IdiR7x3eWZ

— Brad Garlinghouse (@bgarlinghouse) July 2, 2025

Ripple has always kept close to banking institutions, granting its XRPL technology as an alternative to SWIFT payments. XRP was also viewed as a ‘bankers’ coin’ in the past, as Ripple aimed to augment banking, instead of disrupting it entirely. 

Ripple has been categorized as a digital ‘neobank’ despite its lack of an official license. Based on its current services, which include remittances, lending, asset storage, payments, and other features, Ripple has been deemed the equivalent of a banking company. Ripple also partners with other payment providers like OpenPayd to move fiat and expand the reach of RLUSD. 

Ripple’s XRP rallies on news of banking application

XRP immediately reacted to the news of the banking license application, rising from its sideways movement. XRP expanded from recent lows around $2.17 up to $2.26 before taking a step back. 

XRP open interest also ROSE to $1.8B, from levels of around $1.68B. The asset still sees 75% long positions, though the recent rally mostly liquidated short positions on Binance. The asset still awaits a breakout to a much higher range.

The Ripple community was overall enthusiastic about the banking license, showing the mainstream acceptance of the platform. The role of XRP remains limited, as Ripple can handle payments even without the asset, but trading remains highly liquid and the token has shown the ability to outperform based on general market hype.

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