Ripple Seeks National Bank Charter, Joining Circle in Pursuit of Regulatory Approval
Ripple, the cryptocurrency payments firm, has applied for a national bank charter from the Office of the Comptroller of the Currency (OCC) in the United States. CEO Brad Garlinghouse announced the application, emphasizing the company’s commitment to regulatory compliance.
Garlinghouse stated that OCC approval would bring Ripple under the supervision of both state and federal regulators, boosting confidence in its RLUSD stablecoin. “True to our long-term compliance roots, Ripple is applying for a national bank charter from the OCC,” he wrote.
In addition to the OCC application, Ripple has also applied for a Fed Master Account through its subsidiary, Standard Custody. If approved, this would allow Ripple to hold its RLUSD reserves directly with the Federal Reserve (Fed).
Ripple previously secured approval from the New York Department of Financial Services (NYDFS) in December, enabling the company to issue RLUSD under New York’s regulatory framework.
Since its December approval, RLUSD has not met initial expectations. According to CoinGecko data, the stablecoin currently has a market capitalization of $469 million and a daily trading volume of $37 million. This places it significantly behind leading stablecoins like USDT and USDC, which boast market capitalizations of $157.8 billion and $61.6 billion, respectively.
If the OCC grants Ripple a national bank charter, RLUSD will fall under the agency’s regulations. This move positions Ripple among a growing number of cryptocurrency firms seeking to establish a national trust bank.
Circle (CRCL) submitted a similar application to the OCC on Monday to launch the First National Digital Currency Bank. This trust would hold its USDC reserves but would not accept traditional cash deposits or issue loans to customers.
Currently, Anchorage Digital is the only cryptocurrency company with an OCC charter, which it received in 2021.
Meanwhile, tech billionaires Palmer Luckey, Joe Lonsdale, and Peter Thiel are reportedly planning to launch a new U.S. bank called Erebor. The bank aims to serve startups and businesses focused on cryptocurrencies, according to the Financial Times. The group has also reportedly applied for a national bank license for Erebor to replace Silicon Valley Bank, which collapsed in 2023.
XRP is currently trading at $2.26, up 4% in the last 24 hours.
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