The U.S. Office of the Comptroller of the Currency (OCC) announced that community banks can now collaborate with companies developing stablecoins. They further stated that this will help foster innovation and improve access to modern payment services.
The Comptroller of the Currency, Jonathan V. Gould, emphasized that stablecoins can help smaller institutions better meet the payment needs of their communities.
"Community banks play a crucial role in providing essential financial services. Stablecoins are one way these institutions can better meet the payment needs of their communities."
This stance is based on previous actions by the OCC, including Interpretative Letter 1183, which confirmed that cryptocurrency custody, stablecoin reserves, and blockchain-based payment verification are permitted activities for federally regulated banks.
By removing the previous restrictions that required banks to obtain a written no objection, the OCC has effectively reduced the barriers for banks to engage with digital assets.
The regulator stated that it is essential to have solid risk controls, but cryptocurrency services are becoming a regular part of banking. This shift reflects the growing interest of the federal government in establishing regulatory frameworks for stablecoins. Notably, the U.S. Treasury's GENIUS Act has recently opened for public consultation.
For Ripple, the OCC's new stance could be crucial. The company had applied for a U.S. banking license to position RLUSD in traditional finance. Now that banks can hold stablecoin reserves, Ripple can partner with community banks even before obtaining full national bank status.
Additionally, the company has taken further steps to expand its ecosystem to a higher standard. Ripple closed the acquisition of Rail for $200 million, a Toronto-based stablecoin platform that processes over 10% of the global B2B stablecoin volume. This deal expands RLUSD's presence in cross-border settlement and treasury services.
A cryptocurrency commentator highlighted how this move is essential for the advancement of RLUSD towards traditional finance.
"RIPPLE AND RAIL + XRP
Ripple's acquisition of RAIL is not just another M&A headline.
This is infrastructure chess: a direct step towards the infrastructure of the new banking system.
With the OCC's approval and the end of the lawsuit against XRP, confidence has been restored among companies that had been hesitant to use their stablecoin solutions. RLUSD stands out in a competitive market. Its circulating supply has surpassed $500 million, driven by over $150 million in new issuances. This growth has been faster than that of other major stablecoins, indicating that more and more people are using it.
The GENIUS Act also established clear rules that incentivized the participation of institutional investors. Ripple's trust license in New York and its backing in cash and short-term U.S. Treasury bonds also contributed to increasing confidence in the stability of RLUSD.
