Ripple Files for National Banking License as Crypto Firms Rush to Traditional Finance

Ripple has applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC), becoming the latest cryptocurrency company to seek entry into mainstream finance, the Wall Street Journal reported Wednesday.

The cross-border payments company, which manages the dollar-backed stablecoin RLUSD, filed its application Wednesday with the OCC. The move follows Circle's recent application for a national trust bank charter, as reported earlier this week.

A national trust bank charter would bring Ripple's RLUSD stablecoin under OCC oversight, supplementing its current state-level regulation through the New York Department of Financial Services. Jack McDonald, senior vice president of stablecoins at Ripple, said the dual regulatory framework "would basically have set a new bar for transparency and compliance in the stablecoin market."

Separately, Ripple subsidiary Standard Custody & Trust Company applied for a Federal Reserve master account on Monday. The account would enable Ripple to custody reserves directly with the Fed and issue and redeem stablecoins outside normal banking hours.

Ripple indicated it would consider offering additional crypto services through its banking license over time.

Following Circle's Lead

The application comes just weeks after Circle, issuer of the USDC stablecoin, filed for a national trust bank charter following its IPO last month. Circle's proposed entity would operate as First National Digital Currency Bank, N.A., and would allow the company to self-custody its reserves and provide institutional crypto custody services.

Both applications reflect the crypto industry's strategic positioning ahead of expected federal stablecoin legislation. Congress is advancing the Genius Act, which would make banking licenses a requirement for stablecoin issuers.

RLUSD, launched by Ripple at the end of last year, has a market capitalization of approximately $469 million according to CoinMarketCap. Circle's USDC ranks as the second-largest stablecoin with a $62 billion market cap.

Currently, crypto custodian Anchorage Digital remains the only digital currency firm in the country with a federal bank charter. If approved, both Ripple and Circle would join this exclusive category.

McDonald noted that while individual investors and crypto-native companies have driven initial stablecoin growth, institutional investors have been waiting for greater regulatory oversight before entering the market. "Deep-pocketed investment firms and other institutions have been waiting until the market came under greater regulatory oversight before entering the fray," he said.

The applications signal crypto companies' efforts to bridge traditional finance and digital assets as regulatory clarity approaches and institutional adoption accelerates.