Ripple requests national banking license to expand cryptocurrency services - WSJ

Editor

Louis Juricic

Investing.com -- Ripple has requested a national banking license as part of an effort by cryptocurrency companies to enter the conventional financial market, according to a report from the Wall Street Journal.

The company, which manages international payments and a dollar-backed stablecoin called RLUSD, submitted its application on Wednesday to the U.S. Office of the Comptroller of the Currency (OCC).

Currently, RLUSD is regulated by the New York Department of Financial Services at the state level. If approved, a national charter would place the stablecoin under the supervision of the OCC.

"The dual nature of this regulation would basically establish a new standard of transparency and compliance in the stablecoin market," said Jack McDonald, senior vice president of stablecoins at Ripple.

Stablecoins typically maintain a one-to-one exchange rate with government currencies by holding reserves in cash or safe assets, such as Treasury bonds.

Ripple indicated that it may consider offering additional cryptocurrency services through its banking license in the future.