Ripple Makes Power Play: Files for U.S. Bank Charter and Fed Master Account Access

Ripple just dropped a regulatory bombshell—and traditional banks might want to pay attention.

The crypto payments giant is gunning for a U.S. bank license and direct access to the Federal Reserve's master account system. If approved, this would let Ripple settle transactions in real-time without needing traditional banking intermediaries.

Why it matters: Fed master accounts are the holy grail for fintechs—instant access to the backbone of the U.S. financial system. Most crypto firms get stuck in 'Fed purgatory' for years (if they get approved at all).

Behind the move: Ripple's been quietly building banking infrastructure while fighting the SEC. Now they're going straight for the jugular—a full-stack alternative to correspondent banking.

The cynical take: Watching crypto firms beg for banking privileges after years of 'we don't need banks' rhetoric? Priceless.

One thing's clear: The line between crypto and traditional finance keeps blurring. And Ripple just redrew it.

• Ripple files for national banking license with the OCC
• RLUSD may soon be regulated under both state and federal law
• Ripple’s Fed master account bid targets direct reserve custody

Ripple has officially made an application for a national banking license, as it expands its role within traditional finance. The firm’s application, which was filed with the U.S. Office of the Comptroller of the Currency (OCC), indicates its ambitions. Moreover, Ripple has applied for a Federal Reserve master account through its subsidiary, Standard Custody & Trust.

Ripple Files For A National Banking License

The banking license will move Ripple under federal surveillance, which adds to its current regulatory framework under New York’s financial authority. The Ripple’s stablecoin, RLUSD, is regulated under the New York Department of Financial Services (NYDFS). Therefore, an OCC charter would shift RLUSD to national regulation, to enhance broader institutional compliance.

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

The regulatory framework, which combines both state and federal surveillance, could improve institutional trust and compliance in stablecoin operations. Ripple seeks to place RLUSD as a transparent model in the $250 billion stablecoin market. Ripple also believes that the dual regulatory model could set new industry standards in risk management as well as asset reserves.

Ripple’s application comes after Circle’s recent MOVE to secure a national trust bank license from federal regulators. The companies intend to match their operations with U.S. banking law, to reinforce the credibility of stablecoins. Ripple seeks to lead regulatory momentum as well as institutional interest.

Ripple Seeks A Federal Master Reserve Account

Ripple’s subsidiary, Standard Custody & Trust, will handle the Federal Reserve account, to streamline custodial and reserve operations. A direct access to the Fed could enhance liquidity, transparency, and user confidence in the RLUSD reserve structure. Ripple believes this access will enhance a sustainable stablecoin ecosystem.

Source: X

If approved, Ripple’s Federal Reserve master account will allow RLUSD to directly hold reserves at the central bank. This seeks to reduce third-party risks and provide an added LAYER of stability to the asset. The account further shows Ripple’s efforts to offer secure infrastructure with banking-grade custodial practices.

Ripple’s Bank License Application Awaits OCC Review

The OCC may take several months to review the Ripple compliance, disclosures, and risk assessments. Ripple, in response, expressed confidence in meeting the OCC’s requirements as well as operational readiness. The firm reinforced its commitment to work with the NYDFS during the transition.

The company states that the license and Fed account will expand its capabilities more than stablecoin issuance. The firm could offer regulated crypto services within a bank-compliant framework in future. This move could place Ripple ahead of competitors in integration in the U.S. financial system.