Ripple US Banking License: Will Crypto Finally Go Mainstream?
To strengthen their connections with regular banking, cryptocurrency companies are seeking regulation. In this context, cryptocurrency company Ripple Labs is applying for a banking license in the United States after stablecoin issuer Circle Internet Group took a similar action.
On Wednesday, Brad Garlinghouse, the CEO of Ripple, revealed on X that the company is submitting an application for a license from the US Office of the Comptroller of the Currency (OCC). This came after The Wall Street Journal published an article earlier.
True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC,
Garlinghouse
Stablecoin Wars Heat Up With Ripple and Circle Seeking OCC Approval
Two days after Circle, the company that issues USDC, the second-largest stablecoin, applied to the OCC to establish a national trust bank to manage its stablecoin reserves, Ripple decided to obtain a banking license. According to Jeremy Allaire, co-founder and CEO of Circle, the business is actively working to comply with new US regulations governing the issue and use of stablecoins denominated in dollars.
Both companies’ actions coincide with the GENIUS Act, a stablecoin regulation measure that was approved by the US Senate. The measure establishes guidelines for issuing tokens that are pegged to the US dollar, including granting the OCC supervision over bigger stablecoin issuers.
Ripple Seeks Direct Fed Access as Part of Banking Ambitions
In order to gain access to the US central banking system, Ripple also registered for a Master Account with the Federal Reserve, according to Garlinghouse.
This access would allow us to hold $RLUSD reserves directly with the Fed and provide an additional layer of security to future proof trust in RLUSD. Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in,
Garlinghouse
Ripple used Standard Custody, a cryptocurrency custody company it purchased in February 2024, to apply for the account. When the company applies for a bank charter, the XRP price increases by more than 3%.
For more up-to-date crypto news, you can follow Crypto Data Space.
