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Ripple has applied for a national bank charter with the Office of the Comptroller of the Currency (OCC).
If approved, its RLUSD stablecoin will fall under OCC oversight.
XRP surged 4% following the announcement.
XRP gained 4% on Wednesday after Ripple filed an application with the OCC to obtain a national bank charter, enabling it to custody its own reserves.
Ripple Joins Circle in Pursuing US Bank Charter
Crypto payments firm Ripple has submitted an application to the OCC for a U.S. national bank charter, CEO Brad Garlinghouse revealed in a Wednesday X post. He stated that approval would subject the company to state and federal oversight, bolstering confidence in its RLUSD stablecoin.
"True to our longstanding compliance-first roots, Ripple is applying for an OCC national bank charter," Garlinghouse wrote.
He also shared that Ripple, via its subsidiary Standard Custody, recently applied for a Federal Reserve master account. Approval would allow the firm to hold RLUSD reserves directly with the Fed.
Ripple received approval from the New York Department of Financial Services (NYDFS) in December to issue RLUSD within the state’s regulatory framework.
Since then, RLUSD has underperformed. According to CoinGecko, the stablecoin’s current market cap is $469 million, with a daily trading volume of $37 million—far below leaders like USDT ($157.8B) and USDC ($61.6B).
If granted, the OCC charter would place RLUSD under federal supervision. This move adds Ripple to a growing list of crypto firms seeking national trust bank status.
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Circle filed a similar application on Monday to launch the First National Digital Currency Bank, aimed at holding USDC reserves (though it wouldn’t accept traditional deposits or issue loans). Anchorage Digital remains the only crypto firm with an OCC charter, secured in 2021.
Meanwhile, tech billionaires Palmer Luckey, Joe Lonsdale, and Peter Thiel plan to establish Erebor, a new U.S. bank targeting startups and crypto-focused businesses (Financial Times reports). The group allegedly applied for a national charter to replace the defunct Silicon Valley Bank.
XRP traded at $2.26 at publication time, up 4% over 24 hours.
FAQ Section
1. Why does Ripple need a bank charter?
A charter would enable direct custody of reserves under federal oversight, enhancing trust in RLUSD and streamlining compliance.
2. How does this affect XRP’s price?
Regulatory clarity often boosts investor confidence. XRP’s 4% rise reflects optimism about Ripple’s expanded capabilities.
3. What distinguishes RLUSD from other stablecoins?
Unlike USDT or USDC, RLUSD would be backed by a federally chartered entity, potentially offering stronger regulatory safeguards.
4. Which other crypto firms hold bank charters?
Only Anchorage Digital has an OCC charter. Circle and Ripple are currently awaiting decisions.
5. Can Erebor replace Silicon Valley Bank?
Erebor aims to serve startups and crypto businesses, but its success depends on regulatory approval and market adoption.
👉 Learn more about stablecoin regulations
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