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.