According to ChainCatcher, Ripple and Circle have applied for a U.S. national trust bank license. If approved, they will be subject to federal regulation and close to the core of the U.S. financial system. The two companies will comply with the same capital, liquidity and risk standards as traditional banks.
Chris Colson, a payment expert at the Federal Reserve Bank of Atlanta, said this shows that stablecoins will enter the financial mainstream. After obtaining a license, Ripple and Circle can serve as federally regulated custodians, hold stablecoin reserves, and may access the Federal Reserve's real-time payment system. This poses a significant competition to existing banks.