Crypto firms are preparing for stablecoins’ mainstream push with licence applications
Ripple has applied for a US national bank charter from the Office of the Comptroller of the Currency (OCC), following similar moves from other fintechs in recent weeks.
Brad Garlinghouse, CEO of Ripple, confirmed the application on June 2 via a post on X.
“True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market,” an excerpt of the post reads.
If approved, the licence would allow Ripple to bypass intermediary banks, resulting in reduced costs and faster settlements.
Ripple has recently been on a regulatory push. The company has also applied for a Master Account from the Federal Reserve, which is essentially a bank account held at one of the 12 Federal Reserve Banks.
This account allows approved firms to deposit funds directly with the Federal Reserve, access payment systems like Fedwire and ACH. settle transactions in central bank money and manage reserves and intraday balances.
“Earlier in the week via @StandardCustody, we also applied for a Fed Master account — while Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in, this access would allow us to hold $RLUSD reserves directly with the Fed and provide an additional layer of security to future proof trust in RLUSD,” Garlinghouse’s post continued.
Zooming out and looking more generally, this move by Ripple signals crypto firms are attempting to integrate with traditional finance.
Stablecoins have long been viewed as the bridge needed between the two sectors, with banks such as Bank of America expressing interest in adopting stablecoins earlier this year. However, one of the main hurdles to embracing digital currencies in the US was the lack of clear regulations.
These barriers are beginning to be lowered. On June 17, the US Senate passed the GENIUS Act, the first federal legislation to regulate payment stablecoins.
Preparing for stablecoin’s mainstream push
Ripple isn’t the only firm seeking greater regulatory access.
On June 30, Stablecoin giant Circle announced its application to establish a national trust bank, First National Digital Currency Bank, N.A.
Pending regulatory approval from the OCC, the licence would authorise First National Digital Currency Bank to operate as a federally regulated trust institution. This would position the bank to oversee the management of the USDC Reserve on behalf of Circle’s US issuer.
“By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure,” said Circle Co-Founder, Chairman and CEO Jeremy Allaire.
“Further, we will align with emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the US dollar, and support the development of crucial, market neutral infrastructure for the world’s leading institutions to build on.”
