Ripple is proactively engaging with conventional finance by applying for a national banking charter in the United States, specifically aiming to regulate its RLUSD stablecoin more closely. This application signifies a strategic endeavor to enhance RLUSD’s stability and establish a more direct relationship with the financial system. If successful, it would allow Ripple to directly manage RLUSD reserves with the Federal Reserve.

Brad Garlinghouse, Ripple’s CEO, confirmed this application, highlighting that RLUSD has already been operating under financial oversight from New York’s regulators. Acquiring a national charter via the Office of the Comptroller of the Currency (OCC) would integrate state approvals with federal recognition, underscoring Ripple’s commitment to the integrity of RLUSD.

The Bigger Picture Behind the Charter

What does this imply? Holding a bank charter would facilitate Ripple’s capacity to maintain reserves at the Federal Reserve, eliminating intermediaries like traditional banks and paving the way for smoother and more transparent operations.

🇺🇸 NEW: Ripple has applied for a U.S. National Bank License https://t.co/cMoTtdTrlJ — Ashjessy 💹🧲 (@MS12326) July 3, 2025

Moreover, the company intends to transition RLUSD reserves from commercial banks to the Federal Reserve, enhancing supervisory oversight. For a stablecoin striving to compete with USDC and Tether, this transition could create a significant competitive advantage.

Ripple Is Not Alone

The timing aligns strategically as Circle, the issuer of USDC, has also recently sought a national trust bank charter, aiming to foster a regulated environment for digital dollars and tokenized assets. Both firms are attempting to navigate the evolving regulatory framework ahead of stricter standards on stablecoins.

Presently, Anchorage Digital is the sole crypto entity with a federal charter, and Ripple’s intention to join this cohort reflects its aspirations for leadership in the sector. As the GENIUS Act gains momentum in Congress, the regulatory atmosphere surrounding stablecoins is quickly transforming from hypothetical to concrete.

RLUSD’s Position and What Comes Next

Launched in late 2024, RLUSD has achieved a market capitalization of approximately $470 million, which, while not dominant, positions Ripple as a contender in the stablecoin arena. Gaining a federal banking charter could empower RLUSD to attract banks, payment processors, and institutional interest.

Beyond RLUSD, Ripple’s charter would facilitate expansions into cross-border payments and the custody of digital assets on a federally regulated basis. Should the OCC approve this application, Ripple would operate on par with traditional financial institutions.

What to Watch

While Ripple’s approval is not assured, the process involves approvals from various agencies and will require extensive scrutiny. The ongoing legal proceedings regarding XRP could also influence regulatory judgments. However, should the charter be granted, Ripple would establish one of the most robust compliance architectures within the stablecoin domain.

This venture marks a substantial regulatory benchmark and signals rapid evolution within the stablecoin sector, where only firms compliant with regulations can scale effectively. Ripple’s endeavor appears to be a strategic step in preparing RLUSD for its next phase of development.