Ripple Labs has initiated applications for a national bank charter with the Office of the Comptroller of the Currency (OCC) and a Federal Reserve Master Account.
The move aims to align Ripple’s operations directly with US federal financial oversight frameworks, specifically strengthening the regulatory foundation for its stablecoin, RLUSD. While RLUSD already operates under a New York Department of Financial Services charter, securing this bank charter would significantly enhance its federal compliance posture.
The Federal Reserve Master Account application would allow Ripple to hold reserves backing RLUSD directly at the Federal Reserve. This direct access is intended to bolster RLUSD’s stability and overall trustworthiness as a fiat-backed stablecoin.
The announcement of the charter pursuit coincided with a positive market reaction for Ripple’s XRP token, which saw its price increase over 3%.
This push by Ripple mirrors a broader industry trend towards seeking federal oversight, exemplified by Circle’s parallel efforts to establish a national trust bank for its own USDC stablecoin.