Ripple, the operator of a cross-border payments system and the issuer of the RLUSD stablecoin, has submitted an application for a national banking license to the U.S. Office of the Comptroller of the Currency (OCC), according to the Wall Street Journal. This move opens the door for Ripple to expand beyond the crypto market into the traditional financial system and to bring its asset under stricter regulatory oversight.
What Will Change for RLUSD
Currently, the RLUSD stablecoin is regulated at the state level by the New York Department of Financial Services. Obtaining a federal license would place the asset under OCC jurisdiction. According to Jack McDonald, Ripple’s Senior Vice President of Stablecoins, this dual-layer regulation could become the new standard for transparency and compliance in the market.
Ripple’s Service Expansion
Looking ahead, Ripple plans to use the banking license not only to issue RLUSD but also to offer additional crypto-related services. While specific plans are not disclosed, the license significantly expands the company’s legal capabilities within the United States.
Federal Reserve Application Through Subsidiary
This week, Ripple’s subsidiary, Standard Custody & Trust Company, also filed a request with the Federal Reserve to open a master account. This would enable Ripple to place RLUSD reserves directly with the Fed and handle stablecoin issuance and redemption 24/7, bypassing the traditional banking schedule.
A New Stage in Stablecoin Legalization
Jack McDonald explains that, unlike crypto-native users and high-net-worth individuals, large institutional players have so far avoided stablecoins due to insufficient regulation. However, the situation could change with the anticipated passage of the GENIUS Act, which would require a banking license for stablecoin issuance. Ripple is aiming to stay ahead of the regulatory curve by securing bank status in advance.
Competition and Market Position
Currently, Anchorage Digital remains the only crypto firm in the U.S. with a federal banking license. But other major players are moving in the same direction. Circle, the issuer of USDC, the second-largest stablecoin with a $62 bln market cap, recently filed for a national banking license as well.
RLUSD, launched by Ripple late last year, still lags behind in volume. According to CoinMarketCap, its current market capitalization stands at $469.3 mln.
Amid the overall market uptrend and news of the application, XRP rose 3,98% over the past 24 hours, reaching $2.28.
