Ripple officially applies for OCC banking license, $RLUSD will be subject to dual supervision
Ripple officially submitted an application for a national banking license to the U.S. Office of the Comptroller of the Currency (OCC) on Wednesday (7/3), becoming the second major stablecoin issuer to seek federal banking regulation after Circle. The company's CEO Brad Garlinghouse confirmed the news on the X platform, saying that if approved, Ripple will be regulated by both the state government (New York Department of Financial Services) and the federal government, establishing a "new and unique trust benchmark" for the stablecoin market.
Image source: X CEO Brad Garlinghouse confirmed that Ripple has officially submitted an application for a national bank license to the U.S. Office of the Comptroller of the Currency (OCC)
Currently, the market value of Ripple's USD stablecoin $RLUSD is about $469 million, far lower than the market leader Tether's nearly $158 billion and Circle's USDC of about $62 billion. However, according to Artemis data, the supply of $RLUSD has grown by nearly 490% in 2025, exceeding $455 million, and the transaction volume in June hit a record high of $2.6 billion.
Image source: Artemis $RLUSD supply has grown by nearly 490% in 2025, exceeding $455 million
Garlinghouse also revealed that Ripple subsidiary Standard Custody & Trust Company also applied for a Federal Reserve Bank master account this week. If approved, Ripple will be able to hold $RLUSD reserves directly at the Federal Reserve instead of through commercial banks, which will provide an additional layer of security for $RLUSD and make it the first stablecoin with direct access to the central bank.
The industry has set off a wave of bank license applications, and the regulatory environment has become clearer
Ripple's application follows closely on the heels of Circle, which on Monday applied to the OCC to establish a "First National Digital Currency Bank" to manage its own reserves for the $USDC stablecoin and provide custody services to institutional investors. Currently, only one cryptocurrency company, Anchorage Digital, holds a federal banking license, making Ripple and Circle's applications particularly eye-catching.
This wave of bank license applications is closely related to the US Congress's promotion of stablecoin regulatory legislation. The Senate recently passed the GENIUS Act, which sets standards for the issuance of dollar-pegged tokens and stipulates that the OCC will regulate large stablecoin issuers. President Trump also expressed the hope that the bill will be passed by the House of Representatives as soon as possible and sent to his desk for signature.
Further reading
USDC issuer makes another move! Circle applies for a trust license to create the first digital currency bank. Genius bill passes Senate! GENIUS focuses on dollar dominance and consumer protection, awaiting House deliberation
The United States gives the green light! Banks can provide cryptocurrency services, and crypto companies are applying for banking licenses
Jack McDonald, senior vice president of Ripple's stablecoin department, said that the dual regulatory nature will set a new standard for transparency and compliance in the stablecoin market. Currently, $RLUSD has been subject to monthly certification reviews and has deposited cash and short-term U.S. Treasury bonds in bankruptcy-isolated custodial accounts, while the acquisition of a banking license and a master account will further meet the due diligence requirements of institutional investors.
$XRP Rises as Crypto Firms Embrace Traditional Finance
Industry analysts believe that these applications reflect that the cryptocurrency industry is moving beyond its early anti-bank philosophy and embracing bank-level governance to serve institutional clients and comply with upcoming regulations. Under the Trump administration's friendly regulatory environment, federal financial regulators including the OCC have taken friendlier measures, including allowing national banks to buy and sell cryptocurrencies on behalf of customers.
Following the announcement of Ripple’s banking license application, the $XRP token, which is closely associated with the company, rose 2.8%, climbing from $2.17 to $2.24, according to CoinGecko data. $XRP is the native cryptocurrency of the XRP Ledger blockchain, which is also the core technology used by Ripple for its payment products.
Image source: Coingecko $XRP rose 2.8% in response, climbing from $2.17 to $2.24
Notably, Garlinghouse publicly denied having a formal relationship with private equity marketplace Linqto on the same day he announced his banking license application. The platform is currently under investigation by the SEC and the Department of Justice for alleged unregistered share sales. Garlinghouse clarified that Ripple never sold equity to Linqto, and that the platform's 4.7 million Ripple shares were purchased entirely from the secondary market.
The OCC will now review Ripple’s business plan, capitalization, risk controls and management history, a process that typically includes a public comment period and can take more than 12 months.
"Ripple applies for a US banking license! Will RLUSD be subject to dual regulation, competing with Circle?" This article was first published in "Crypto City"
