Ripple Applies for Federal Bank Charter to Expand RLUSD Stablecoin Legitimacy

Ripple Applies for Federal Bank Charter to Expand RLUSD Stablecoin Legitimacy

Ripple Labs has officially applied for a U.S. federal bank charter in a strategic move to bring its stablecoin RLUSD under a nationwide regulatory framework. This makes Ripple the second stablecoin issuer to do so, following Circle. If approved, Ripple will operate under the supervision of the Office of the Comptroller of the Currency (OCC), enabling broader services across the United States.

Currently, RLUSD is regulated by the New York Department of Financial Services (NYDFS). With the federal charter, the coin would benefit from dual regulation, boosting transparency and compliance. Ripple's SVP Jack McDonald emphasized that the bank license will support future crypto services beyond stablecoins.

Strengthening Infrastructure with Fed Master Account

In parallel, Ripple has also applied for a Federal Reserve master account via its subsidiary, Standard Custody & Trust. If granted, Ripple could directly store reserves with the Fed and issue or redeem RLUSD even outside normal banking hours. This would significantly improve operational efficiency and investor trust.

Proactive Strategy for U.S. Stablecoin Regulation

The application comes as Congress pushes the Genius Act, a bill that may mandate federal bank licenses for all stablecoin issuers. By moving early, Ripple positions itself to comply with upcoming requirements and maintain a foothold in the U.S. market.

To date, Anchorage Digital is the only crypto firm with a federal bank license, though it does not issue stablecoins. Circle, Paxos, and other competitors are also reportedly seeking licenses, suggesting rising competition in this space.

RLUSD Growth and Outlook

Launched in late 2024, RLUSD is backed by U.S. dollars, short-term Treasuries, and cash. Its market cap currently stands at around $469 million. RLUSD is live on both Ethereum and XRP Ledger and continues to expand its global presence.

SEC Approves Grayscale’s Digital Large-Cap Fund Conversion to ETF

SEC Approves Grayscale’s Digital Large-Cap Fund Conversion to ETF — A New Era for Altcoin ETFs?

The U.S. Securities and Exchange Commission (SEC) has officially approved Grayscale’s Digital Large-Cap Fund to be converted into an Exchange-Traded Fund (ETF), signaling a major shift in the evolution of cryptocurrency investment products.

This fund tracks the CoinDesk Five Index, comprising the top five cryptocurrencies by market capitalization

Bitcoin (BTC): 80.2%

Ethereum (ETH): 11.3%

XRP: 4.8%

Solana (SOL): 2.7%

Cardano (ADA): 0.81%

From Trust to ETF: A Strategic Move

This conversion aims to eliminate pricing inefficiencies that were common under Grayscale’s former trust structure. Trust products often faced lock-up periods and lacked redemption mechanisms, creating discrepancies between market price and actual NAV. The ETF model offers greater liquidity, transparency, and tighter price tracking.

Grayscale stated that the fund aims to reflect market-weighted asset allocation in line with real-time pricing.

SEC Streamlines ETF Approval — Altcoin ETFs Set to Accelerate

Alongside this approval, the SEC is reportedly developing a new, streamlined ETF approval process. Currently, applicants must file both Form 19b-4 (via the exchange) and S-1 registration statements (via the issuer). The new process would allow qualifying ETFs to be automatically approved 75 days after filing only the S-1, significantly reducing regulatory friction.

With over 70 altcoin ETF applications currently pending, this procedural reform could lead to a wave of approvals in the near future.

An ETF analyst noted, “This framework could unlock the financialization of altcoins, accelerating their adoption among institutional investors.”

Grayscale’s Digital Large-Cap Fund has been approved as an ETF, reflecting growing regulatory confidence in crypto-based products.

The SEC is planning to simplify ETF approval, enabling faster and more predictable pathways for altcoin ETFs.

These developments could boost market maturity, liquidity, and investor confidence in the digital asset sector.

Ripple vs. SEC Could the July 3 Meeting Mark a Turning Point?

Ripple vs. SEC Could the July 3 Meeting Mark a Turning Point?

The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be entering a new chapter. The crypto community is closely watching a closed-door SEC meeting scheduled for July 3, which some believe could be a pivotal moment in the ongoing XRP litigation.

Is the SEC Meeting Just Routine or a Game-Changer?

According to Crypto Times, speculation is growing within the XRP community. One anonymous user going by “RippleRadar” posted: “Could July 3 be the final chapter of the Ripple legal drama?”—raising hopes that the SEC might move to settle or conclude the case.

However, former SEC attorney Marc Fagel dismissed the speculation, clarifying that such closed meetings are held every Thursday and that there’s no known indication of any XRP-related decision on the agenda. “It’s just another regular meeting,” he stated, emphasizing that any assumption of resolution is mere conjecture.

Ripple Officially Withdraws Appeals

Meanwhile, Ripple has made a decisive move to de-escalate the legal battle. CEO Brad Garlinghouse announced via X (formerly Twitter) that Ripple would withdraw all mutual appeals related to XRP’s security status. He emphasized that the company is ready to “turn the page” and focus on building the “Internet of Value.”

This announcement came shortly after U.S. District Judge Analisa Torres issued a key ruling on June 26, denying the SEC’s request to modify penalties and impose new compliance orders.

While some in the XRP community hope for positive news out of the July 3 SEC meeting, there is no concrete evidence yet to support a resolution. Still, Ripple’s decision to drop its appeals could represent a meaningful step toward settlement, and possibly mark a shift in the SEC’s broader enforcement strategy in crypto markets.