Ripple has filed for a national bank charter to expand its compliance footprint and enhance operations around its RLUSD stablecoin.
Standard Custody’s Federal Reserve account application would allow Ripple to manage RLUSD reserves directly with the U.S. central bank.
The GENIUS Act is shaping stablecoin oversight, prompting Ripple and other issuers to align with expected federal regulatory standards.
Ripple has officially applied for a national bank charter with the Office of the Comptroller of the Currency. The confirmation came directly from Ripple CEO Brad Garlinghouse, who posted about the development on Wednesday. The move signals a major shift in Ripple’s approach to compliance and oversight in the United States.
Alongside the charter application, Ripple’s subsidiary Standard Custody has applied for a Federal Reserve master account. If approved, the account would allow Ripple to hold reserves for its U.S. dollar-backed stablecoin, RLUSD, directly with the Federal Reserve. This access would eliminate the need for intermediary banks and provide direct entry into the central bank’s payment infrastructure.
RLUSD Growth Signals Stablecoin Market Expansion
Launched in December 2024, RLUSD has seen steady market growth. According to DefiLlama data, its market capitalization has reached around $470 million. This increase positions Ripple as a rising player in the stablecoin space, alongside competitors like USDC. The company is currently regulated under the New York Department of Financial Services, but a national bank charter would extend federal regulatory oversight.
Ripple’s regulatory expansion efforts come ahead of the expected enforcement of the GENIUS Act. The bill, which passed the Senate in May, proposes clear standards for stablecoin issuers and gives the OCC supervisory responsibility over large stablecoin providers. Ripple’s current and pending applications align with the bill’s proposed regulatory framework.
Market Responds With Increased XRP Activity
This announcement has caused some traffic in the financial markets. The native coin of Ripple, XRP, increased by 4% within the period of 24 hours, with a trading volume of 3.65 billion. The overall type of trades Coinglass data showed that open interest rose by 8% to 4.5 billion dollars, whereas the volume of XRP futures skyrocketed by 29% to 7.38 billion dollars. The latter shows that more investors are interested in the strategic direction of Ripple.
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