Ripple Files for U.S. Banking License for XRP and RLUSD

Ripple is making a serious move into traditional finance. The company behind XRP has applied for a national banking charter in the United States, aiming to bring its RLUSD stablecoin under direct federal oversight. This isn’t just about checking boxes. It’s a strategic attempt to give RLUSD a stronger foundation and open the door to a deeper role in the financial system. If approved, the Ripple banking license would allow the company to hold RLUSD reserves directly with the Federal Reserve.

Ripple’s CEO, Brad Garlinghouse, confirmed the application publicly, pointing out that RLUSD already operates under New York’s financial regulators. Getting a national charter through the Office of the Comptroller of the Currency (OCC) would expand that coverage, blending state-level approval with federal credibility. It’s also a signal to investors, regulators, and institutions that Ripple wants RLUSD to be taken seriously.

The Bigger Picture Behind the Charter

So what does this actually mean? A bank charter gives Ripple a way to hold reserves directly with the Federal Reserve. That cuts out third-party banks, simplifies operations, and improves transparency. It also means RLUSD could be settled faster and more reliably, especially during nights or weekends when traditional systems shut down.

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Ripple would use its subsidiary, Standard Custody & Trust Company, to apply for the necessary Fed master account. If granted, the RLUSD reserves would move from commercial banks to the central bank, offering stronger protection and oversight. For a stablecoin trying to compete with the likes of USDC and Tether, this could be a major advantage.

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Ripple Is Not Alone

The timing is no coincidence. Earlier this week, Circle—the company behind USDC—also filed for a national trust bank license. Circle wants to create a fully regulated institution focused on digital dollars and tokenized assets. Both Ripple and Circle are reading the same playbook: take the stablecoin game into regulated territory before the rules get even tougher.

So far, Anchorage Digital is the only crypto firm with a federal charter. Ripple’s move puts it in the race to be next. And with the GENIUS Act gaining traction in the Senate, regulation for stablecoins is no longer hypothetical. Standards around reserves, disclosures, and investor protection are already being written.

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RLUSD’s Position and What Comes Next

RLUSD launched in late 2024 and has already grown to a market cap of around $470 million. That’s not enough to challenge the top stablecoins, but it puts Ripple in the conversation. A federal charter could give RLUSD the edge it needs to appeal to banks, payment processors, and institutional investors.

Ripple also has plans beyond RLUSD. The charter would let it expand into cross-border payments and digital asset custody services, all under federal supervision. If the OCC and Fed approve the application, Ripple would be able to offer these services on the same regulatory footing as traditional banks.

What to Watch

Approval is not guaranteed. Getting the charter and a Fed account involves multiple agencies and months of review. Ripple also faces ongoing legal challenges tied to XRP, which could influence regulators’ decision-making. But if the license is granted, Ripple will have one of the strongest compliance setups in the stablecoin market.

This is more than a regulatory milestone. It’s a sign that the stablecoin space is evolving fast, and only those who are ready to play by the rules will be able to scale. Ripple’s banking play is a bet that RLUSD is ready for that next step. The industry is watching closely to see whether the potential Ripple banking license opens the door to broader adoption of RLUSD.

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