Ripple is the latest crypto firm to apply for a banking license, just days after USDC issuer Circle applied for a Trust Bank license.
Ripple is the latest crypto firm to move into traditional finance (TradFi). The crypto firm has reportedly applied for a banking license, which will change the dynamics of its operations in terms of regulation.
Ripple applies for a national banking license.
According to a WSJ report, the crypto firm has applied for a national banking license to join the likes of USDC Issuing Circle, which is looking to join mainstream finance. Ripple filed its application with the U.S. Office of the Comptroller of the Currency (OCC) today.
This comes just two days after Circle filed for a national trust bank license. The report notes that Ripple, which issues the RLUSD stablecoin, is currently subject to the New York Department of Financial Services.
Only the circle, however, will change for the crypto firm as well as a national banking license will put the RLUSD stablecoin under the OCC's regulatory purview. Commenting on the potential change, Jack McDonald, senior vice president of stablecoins at the firm, said,
The dual nature of that regulation would basically have set a new bar for transparency and compliance in the stablecoin market
Meanwhile, Ripple's CEO Brad Garlinghouse also confirmed that the company has filed for a banking license. In an X post, he said that in keeping with his longstanding compliance roots, he has applied to the OCC for a national bank charter.
He added that if approved, they would have both state and federal oversight through the NYDFS, a "new and unique" benchmark for trust in the stablecoin market.
The Ripple CEO also revealed that they have applied for a Fed Master Account through their subsidiary Standard Custody & Trust Company.
He noted that this would enable them to hold RLUSD reserves directly with the Federal Reserve, which would provide an additional layer of security to future-proof confidence in RLUSD.
Finally, he declared that his firm has always built and will continue to build a "reliable, battle-tested and secure infrastructure." According to Garlinghouse, RLUSD stands out in the $250 billion stablecoin market for putting regulation first and setting the standard that institutions expect.