XRP News: Ripple Applies For US Banking License For RLUSD Expansion

Ripple joins Circle in pursuing banking license ambitions. This move has pushed the XRP price to rise by 3% in the last 24 hours.
By Boluwatife Adeyemi
Updated July 3, 2025
An image of Ripple's logo

Highlights

  • Ripple has applied for a national banking license with the OCC.
  • A banking license would mean that Ripple's RLUSD will be regulated by the OCC.
  • Ripple CEO Brad Garlinghouse also confirmed that they have applied for this banking license.
  • The company has also applied for a Fed Master account through its subsidiary.

In the latest XRP news update, Ripple has applied for a banking license. This move is expected to reshape its regulatory landscape. In response to this development, the XRP price has surged by more than 3%, trading at $2.27 at press time.

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Ripple Applies For A National Banking License

According to a WSJ report, the crypto firm has applied for a national banking license, joining the likes of USDC issuer Circle, which is also looking to break into mainstream finance. Ripple filed its application today with the US Office of the Comptroller of the Currency (OCC).

This comes just two days after Circle filed for a national trust bank license. The report noted that Ripple, which issues the RLUSD stablecoin, is currently subject to the New York Department of Financial Services.

However, just Circle, that would also change for the crypto firm, as a national banking license would put the RLUSD stablecoin under the OCC’s regulatory purview. Commenting on this potential change, Jack McDonald, senior vice president of stablecoins at the firm, said,

The dual nature of that regulation would basically have set a new bar for transparency and compliance in the stablecoin market

Meanwhile, Ripple CEO Brad Garlinghouse has also confirmed that the company has filed for a banking license. In an X post, he stated that true to their long-standing compliance roots, they have applied for a national bank charter from the OCC.

He further noted that if approved, they would have both state, via the NYDFS, and federal oversight, which is a “new and unique” benchmark for trust in the stablecoin market.

The Ripple CEO also revealed that they have applied for a Fed Master account through their subsidiary, Standard Custody & Trust Company. He remarked that this would enable them to hold RLUSD reserves directly with the Federal Reserve, providing an additional layer of security to future-proof trust in RLUSD.

Lastly, he declared that his firm has always had and will continue to build a “trusted, battle-tested and secure infrastructure.” According to Garlinghouse, RLUSD stands out in the $250 billion stablecoin market for putting regulation first and setting the standard that institutions expect.

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What It Means For RLUSD and XRP

In an X post, XRPL validator Vet highlighted what Ripple’s application for a banking license could mean for the RLUSD stablecoin. He suggested that this could massively cut counterparty risks for the stablecoin.

Vet further remarked that the move would make RLUSD the safest and most compliant stablecoin. He explained that the stablecoin is issued out of a trust, meaning reserves are safe from the issuer.

The XRPL validator declared that this is already a better setup than many other issuers. For the Master Fed account, he stated that it is better and safer to hold those reserves directly with a FED account than via a bank.

While the update has definitely boosted the prospects for RLUSD adoption, the role of XRP still remains suspicious. As reported by CoinGape, recently, the BitGo CEO sparked concerns that RLUSD in the long run will replace XRP. Many XRP holders are asking where XRP stands amid all this hype around Ripple’s stablecoin.

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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
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