Ripple Applies for National Banking License to Strengthen Stablecoin Framework

San Francisco based blockchain payments company Ripple has taken a significant step toward integrating with the traditional financial system by applying for a national banking license from the U.S. Office of the Comptroller of the Currency (OCC).

The application, filed on July 2, 2025, as reported by the Wall Street Journal, aims to bring Ripple’s dollar-backed stablecoin, RLUSD, and its broader cryptocurrency operations, including XRP, under federal oversight. This move reflects Ripple’s commitment to enhancing transparency and compliance in the rapidly evolving stablecoin market. CEO Brad Garlinghouse emphasized that the license would complement the company’s existing oversight by the New York Department of Financial Services (NYDFS), setting a new standard for trust in the sector.

Ripple’s Strategic Push for Regulatory Clarity

Ripple’s pursuit of a national banking license comes at a time when the U.S. regulatory landscape for cryptocurrencies is shifting. Currently, RLUSD operates under NYDFS supervision, but OCC oversight would impose stricter standards, offering greater transparency for investors and users. Jack McDonald, who leads Ripple’s stablecoin initiative, noted that dual state and federal regulation would establish a new benchmark for compliance in the stablecoin industry. Additionally, Ripple’s Standard Custody & Trust Company has applied for a Federal Reserve master account, which would allow the firm to hold RLUSD’s dollar reserves directly with the Fed, further enhancing security.

The application aligns with broader industry trends, as other crypto firms like Circle, BitGo, Coinbase, and Paxos also pursue banking statuses. Circle, for instance, recently confirmed its own application for a national trust bank charter to strengthen its USDC stablecoin operations. These efforts follow a challenging period for the crypto industry, marked by the 2022 collapse of FTX and the failures of Silvergate and Signature Bank, which left many digital asset firms struggling to secure banking partnerships. Ripple’s proactive approach shows its intent to bridge the gap between DeFi and traditional banking.

The political climate is also playing a major role, with President Trump’s return to office and his pledge to make the U.S. the “Crypto capital of the world” signaling a more crypto friendly environment. This shift has encouraged firms to pursue ambitious regulatory integrations, from full bank charters to limited-purpose licenses focused on stablecoin issuance.

Anchorage Digital, the only crypto firm to secure a federal bank charter in 2021, serves as a precedent, though its journey required significant compliance investments. Ripple’s bid, if successful, could pave the way for other firms to follow suit, particularly as U.S. lawmakers work toward clearer stablecoin regulations such as the GENIUS Act. By seeking both a banking license and a Federal Reserve master account, Ripple is positioning RLUSD as a highly secure and transparent stablecoin, appealing to institutional and retail users.