Ripple heads higher: Application for national banking license and FED master account

Ripple heads higher: Application for national banking license and FED master account

In an effort to strengthen its position in the US cryptocurrency market, Ripple has taken an important step towards increased regulation and infrastructure. The company has officially applied for a national banking license from the Office of the Comptroller of the Currency (OCC), which would mean it would be subject to both federal and state regulatory frameworks.

The move was confirmed by Ripple CEO Brad Garlinghouse, who posted on the X platform (formerly Twitter) on Wednesday that the application had already been submitted and acknowledged by the regulator. Obtaining this license would allow the firm to engage more deeply in the stablecoin sector, primarily through its US dollar-backed token RLUSD. Garlinghouse also said that Ripple has applied for a master account with the Federal Reserve (Fed) through its Standard Custody subsidiary.

Why is this move so important? If the request is approved, Ripple would gain direct access to the Fed's payment systems, eliminating the need for middlemen, increasing security and efficiency in handling its RLUSD reserves. It would also allow the company to hold reserves directly with the central bank, increasing the credibility and stability of their stablecoins.

RLUSD, which was launched in December 2024, has already gained a significant position in the market. According to data from the DefiLlama platform, it has reached a market value of around $470 million. For now, Ripple is regulated at the state level through the New York Department of Financial Services, but gaining a national banking license would provide the company with unique dual oversight, increasing its legitimacy and investor confidence.

The move comes in the context of a series of regulatory changes in the US. Recently, Circle, the creator of the USDC stablecoin, filed for a national trust bank. Both firms are thus preparing for the implementation of a new federal law known as the GENIUS Act, which passed the Senate in May. This law will set clear standards for stablecoin issuers and designate the OCC to oversee larger dollar token providers.

Growing market interest and regulatory pressures are also reflected in the price growth and trading of Ripple's native XRP token. In the last 24 hours, it has risen 4%, with trading volume of over $3.65 billion, a 38% daily increase. Open interest in XRP futures contracts increased by 8%, reaching $4.5 billion. The increase in trades and market interest shows how strongly Ripple is seen as a key player in crypto-regulatory change.

In conclusion, Ripple's application for a banking license and a direct account with the Fed is a strategic move that could fundamentally affect the future of stablecoin tokens and the entire crypto sector in the US. If successful, it will open the way for greater integration of cryptocurrencies into the traditional financial system and strengthen Ripple's position as a leader in innovation and regulation.

*This is not an investment recommendation.

Coingarage team