- Ripple applies for a federal banking charter, signaling major regulatory strides.
- XRP price surges 3% following the announcement.
- Ripple aims for expansive regulated crypto banking infrastructure.
Ripple announced its application for a national trust bank charter with the OCC, led by CEO Brad Garlinghouse, aiming to integrate its stablecoin RLUSD under dual oversight.
The move is pivotal for regulated crypto banking, boosting XRP 3% post-announcement, potentially enhancing RLUSD’s institutional appeal and signaling disruption to legacy banking models.
Ripple Labs has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC), aiming to enhance its regulatory standing in the United States. This move was publicly confirmed by CEO Brad Garlinghouse.
The charter seeks to integrate Ripple’s stablecoin RLUSD and custody services under federal and state oversight. This highlights Ripple’s commitment to compliance and potentially sets a new benchmark in crypto banking infrastructure. “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.” – Brad Garlinghouse, CEO, Ripple Labs. Source
Market Reaction and Industry Implications
The announcement prompted a 3% increase in XRP’s market value, reflecting market optimism. Ripple’s decision could have extensive implications for the digital asset ecosystem, especially in regulated crypto banking.
Ripple’s application coincides with the ongoing lobbying efforts by major US banks opposing such charters. Their concerns cite regulatory clarity and the potential disruption to traditional banking models. For more insight on this topic, you can follow Ripple CEO on Twitter.
Potential Industry Milestones
The application could potentially make Ripple the first federally licensed crypto payment company in the US. This event marks a significant step toward increasing regulated stablecoin adoption and presents challenges to incumbent financial structures.
If successful, Ripple’s initiative could increase institutional attractiveness of RLUSD, with data suggesting benefits in liquidity and custodial flows. This aligns with prior events where similar moves enhanced crypto market accessibility.
