Ripple has applied for a U.S. national bank charter and a Federal Reserve master account to strengthen regulatory alignment and oversight of its RLUSD stablecoin.
The application aims to transition RLUSD’s regulatory supervision from state to federal levels, enhancing compliance frameworks and risk management protocols for the stablecoin operations.
Standard Custody, a Ripple subsidiary, specifically sought the Federal Reserve master account to streamline reserve management for RLUSD. This integration is expected to optimize liquidity distribution and payment efficiency across Ripple’s infrastructure.
RLUSD has rapidly gained market traction since its December 2024 launch, reaching a market capitalization approaching $470 million. This positions it as a notable competitor among USD-pegged stablecoins including USDC and USDT.
Ripple’s regulatory initiatives have coincided with increased XRP market activity. Trading volume has surged to $3.65 billion while futures volume reached $7.38 billion, reflecting heightened investor engagement.
The regulatory strategy may establish momentum for other stablecoin issuers seeking federal alignment and market integration pathways.