Ripple Seeks US Banking License and Federal Reserve Account Amid Stablecoin Regulatory Developments

Key Points

1. Ripple Labs is applying for a national bank charter with the OCC and a Federal Reserve Master Account to secure its stablecoin RLUSD under federal oversight.

2. The company’s RLUSD stablecoin is already regulated by the New York Department of Financial Services, and the bank charter would further solidify its compliance.

3. Ripple’s application for a Master Account would allow it to hold RLUSD reserves at the Fed, enhancing the stablecoin’s stability and trustworthiness.

4. The announcement of Ripple’s bank charter application positively impacted XRP’s market performance, with the token rising over 3%.

5. Circle’s parallel move to establish a national trust bank highlights an industry-wide shift towards federal oversight, with its USDC stablecoin also benefiting from enhanced regulation.