Ripple Pushes for National Bank Charter—RLUSD Stablecoin Eyes Federal & State Oversight in Bold Move

Ripple just made a power play—filing for a national bank charter to bring its RLUSD stablecoin under the watchful eyes of both state and federal regulators. No more crypto wild west; they're opting for a seat at the traditional finance table.

Why it matters: This isn't just paperwork. A charter would let Ripple operate across all 50 states without patchwork compliance headaches—while giving RLUSD instant legitimacy (and maybe making bankers sweat).

The cynical twist: Because nothing says 'decentralized future' like begging permission from the same institutions crypto was meant to disrupt. But hey—when in Rome, file the forms in triplicate.

Dual oversight for RLUSD

According to a Wall Street Journal report, Ripple argues that OCC supervision and Fed account access together address institutional due diligence checklists that still limit the use of stablecoins. 

Data from Artemis shows that RLUSD’s supply, surpassing $455 million. The transaction volume recorded a new all-time high in June, touching $2.6 billion.

Ripple’s stablecoin already undergoes monthly attestations and holds cash and short-dated Treasuries in bankruptcy-remote custody accounts. 

The report cited Jack McDonald, senior vice-president for stablecoins at Ripple, who said the national charter and master account would “set a new bar for transparency and compliance in the stablecoin market.”

Linqto probe

The charter announcement landed hours after Garlinghouse publicly denied, a private equity marketplace now under investigation by the Securities and Exchange Commission and the Department of Justice for alleged unregistered share sales.

In a separate July 2 post on X, Garlinghouse said Ripple never sold equity to Linqto and that the platform’s 4.7 million Ripple shares came entirely from secondary purchases. He also reminded investors that Ripple halted approvals for Linqto-related secondary transfers in late 2024.

Linqto’s former chief executive, William Sarris, faces accusations of inflating Ripple share prices by more than 60% and marketing special-purpose-vehicle units to about 5,000 non-accredited investors. 

Those allegations surfaced as regulators examine whether the platform violated securities rules by pooling private-company stock in opaque structures.

The OCC will now review Ripple’s business plan, capitalization, risk controls, and management history. The process usually includes a public comment period and can stretch beyond 12 months.