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Ripple Makes Power Play: Files for US Banking Charter to Dominate Stablecoin Market

Ripple Makes Power Play: Files for US Banking Charter to Dominate Stablecoin Market

Published:
2025-07-03 08:08:43
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Ripple just dropped a regulatory bombshell—the crypto giant is gunning for a US banking license to supercharge its stablecoin ambitions. Talk about playing chess while others play checkers.

Why this matters: A banking charter would let Ripple mint USD-backed stablecoins while bypassing the regulatory limbo strangling competitors. The move could rewrite the rules of crypto-fiat integration overnight.

The cynical take: Because nothing says 'decentralized finance' like becoming a licensed bank—except maybe charging 30 bps for 'instant' cross-border payments. Wall Street would be proud.

TLDR

  • Ripple has applied for a US national banking license from the Office of the Comptroller of the Currency (OCC) to expand crypto services under federal regulation
  • The company also applied for a Federal Reserve Master Account to hold RLUSD stablecoin reserves directly with the Fed
  • Ripple partnered with London-based OpenPayd to build stablecoin and payments infrastructure for cross-border business transactions
  • The moves follow Circle’s similar banking license application and come as Congress advances stablecoin regulation through the GENIUS Act
  • XRP token gained over 3% following news of Ripple’s banking license application

Ripple Labs has applied for a US national banking license from the Office of the Comptroller of the Currency (OCC). The crypto payments company also submitted an application for a Federal Reserve Master Account.

CEO Brad Garlinghouse confirmed the banking license application on social media platform X on Wednesday. The announcement followed an earlier report by The Wall Street Journal about Ripple’s regulatory plans.

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

The banking license would allow Ripple to expand its crypto services and operate across state lines under federal regulation. Garlinghouse described the potential approval as a “new benchmark for trust in the stablecoin market.”

Ripple’s stablecoin RLUSD is already regulated by the New York Department of Financial Services. The company seeks additional federal oversight to strengthen its regulatory position.

The Federal Reserve Master Account application would give Ripple direct access to the US central banking system. This access would allow the company to hold RLUSD reserves directly with the Federal Reserve.

Garlinghouse said the Fed account would “provide an additional LAYER of security to future proof trust in RLUSD.” Ripple submitted the Master Account application through Standard Custody, a crypto custody firm it acquired in February 2024.

Following Circle’s Lead

Ripple’s banking license application came just two days after Circle Internet Group made a similar move. Circle, which issues the second-largest stablecoin USDC, applied to the OCC to create a national trust bank.

Both companies are responding to advancing US stablecoin regulation. The US Senate passed the GENIUS Act, which establishes standards for dollar-pegged tokens and designates the OCC to oversee larger stablecoin issuers.

Circle co-founder Jeremy Allaire said his company was taking “proactive steps” to align with emerging US regulation. Anchorage Digital remains the only crypto firm currently holding a national bank charter.

Partnership with OpenPayd

Ripple announced a partnership with London-based fintech firm OpenPayd to build stablecoin and payments infrastructure for businesses. The collaboration will integrate Ripple’s payments network with OpenPayd’s fiat rails.

The partnership includes support for Ripple USD (RLUSD) stablecoin operations. OpenPayd will enable direct minting and burning of RLUSD tokens for enterprise clients.

Jack McDonald, Ripple’s SVP of stablecoins, said the partnership gives enterprises “reliable access to RLUSD.” The solution targets cross-border payments, treasury management, and dollar liquidity needs for businesses.

Market Response and Business Operations

XRP token gained over 3% following news of Ripple’s banking license application. The token climbed from Wednesday evening, reaching a 24-hour peak of $2.27 before settling at $2.24.

Source: CoinGecko

Ripple Payments processes over $70 billion in payment volume annually across more than 90 payout markets. The banking license application represents Ripple’s latest effort to deepen ties with traditional finance through regulatory compliance.

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