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Highlights
- OCC confirms U.S. community banks can now partner with stablecoin issuers without restrictions.
- The policy shift paves the way for Ripple to integrate RLUSD into community banks, even before its national bank license is approved.
- The OCC’s decision reflects the improving regulatory climate in the U.S.
The OCC confirmed that community banks can now partner with stablecoin firms. This move arrives as Ripple continues to push its RLUSD stablecoin into broader adoption.
OCC Opens Door for Banks to Embrace Stablecoins
The U.S. Office of the Comptroller of the Currency (OCC) announced that community banks can now partner with companies building stablecoins. They further stated that it will help foster innovation and improve access to modern payment services.
Comptroller of the Currency Jonathan V. Gould underscored that stablecoins can help smaller institutions better serve the payment needs of their communities.
Community banks play a crucial role in providing essential financial services. Stablecoins are one way for these institutions to better serve their communities’ payment needs.
This stance builds on earlier OCC actions, including Interpretive Letter 1183, which confirmed that crypto custody, stablecoin reserves, and blockchain-based payment verification are all permissible activities for federally regulated banks.
By withdrawing prior restrictions that required banks to secure written non-objection, the OCC has effectively lowered the barriers for banks to engage with digital assets.
The regulator stated that strong risk controls are essential, but crypto services are becoming a regular part of banking. This change reflects increasing interest from the federal government in establishing regulatory frameworks for stablecoins. Notably, the U.S. Treasury’s GENIUS Act was recently opened for public consultation.
What This Means for Ripple and RLUSD
For Ripple, the OCC’s new stance could be pivotal. The company had applied for a U.S. banking license in a bid to position RLUSD in traditional finance. With banks now allowed to hold stablecoin reserves, Ripple can partner with community banks even before securing full national bank status.
Additionally, the firm had made further steps to expand its ecosystem to a greater standard. Ripple closed a $200 million acquisition of Rail, a Toronto-based stablecoin platform that processes over 10% of global B2B stablecoin volume. This deal expands RLUSD’s footprint in cross-border settlement and treasury services.
A crypto commentator highlighted how this move is essential in RLUSD’s move into traditional finance.
RIPPLE & RAIL + XRP
Ripple’s acquisition of RAIL isn’t just another M&A headline.
This is infrastructure chess—a direct move into the plumbing of the new banking system.
With this OCC greenlight and the XRP Lawsuit end, trust has been restored among enterprises that had been hesitant to engage with its stablecoin solutions. RLUSD stands out in a competitive market. Its circulating supply has gone over $500 million, boosted by more than $150 million in new issues. This growth has been faster than that of other major stablecoins, indicating that more people are using it.
The GENIUS Act also provided clear rules that encouraged institutional investors to get involved. Ripple’s trust license in New York and its support from cash and short-term U.S. Treasuries also helped increase confidence in RLUSD’s stability.
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