Ripple, a prominent firm in the digital asset space, has formally applied for a national banking license with the Office of the Comptroller of the Currency. This move, confirmed to CoinDesk, aims to broaden their cryptocurrency services and enable operations across state lines under federal supervision.

Meanwhile, XRP, Ripple’s associated cryptocurrency, saw a rise of 3% following this announcement. This application is in line with similar steps taken by other stablecoin issuers, including Circle, as they seek federal oversight amid evolving U.S. regulatory frameworks.

Garlinghouse emphasized that with federal approval, Ripple would establish a distinctive standard for trust within the stablecoin sector, providing dual oversight by both state (via NYDFS) and federal authorities. Additionally, Ripple is looking to secure a master account with the Federal Reserve, which would facilitate direct access for the company’s operations without intermediaries.

“Should we succeed in this, it would not only bolster our operational security but also enhance the reliability of our stablecoin, RLUSD,” Garlinghouse noted.

This development signals an increased momentum among cryptocurrency-related firms to solidify their standing within regulatory frameworks, as ongoing legislation concerning stablecoins progresses through the U.S. Congress.