XRP punched higher after Ripple (XRP-USD) announced that it is making a play to become a regulated U.S. bank. CEO Brad Garlinghouse confirmed that the company has officially applied for a national banking license from the Office of the Comptroller of the Currency (OCC), as well as a Master Account with the Federal Reserve. If approved, this would grant Ripple direct access to the U.S. banking system. This is a powerful move that could cement RLUSD’s role in the stablecoin economy and give Ripple control over its own regulatory destiny.
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Following Circle’s Lead in the Race for Stablecoin Legitimacy
This move puts Ripple shoulder to shoulder with Circle, the issuer of USDC, which applied earlier this week to form a national trust bank under the OCC. Both firms are responding to the GENIUS Act, recently passed by the Senate, which proposes that stablecoin issuers fall under OCC oversight. The race is now officially on to become the first true crypto-native bank to scale under a national charter.
RLUSD Eyes Fed-Level Trust
Ripple’s application for a Fed Master Account could unlock a major advantage. It would allow the company to custody RLUSD reserves directly with the central bank, sidestepping traditional intermediaries and boosting trust in its enterprise-grade stablecoin. According to Garlinghouse, it would also offer an extra layer of security and transparency for institutions transacting with RLUSD.
Ripple Plays the Long Game on Regulation
Garlinghouse emphasized Ripple’s compliance-first reputation, framing the move as an extension of its “long-standing” commitment to regulation. RLUSD is already overseen by the New York Department of Financial Services. If the OCC and Fed applications are approved, Ripple would join Anchorage Digital as one of the only crypto-native firms with full federal banking status.
XRP Price Reacts as Traders Bet on Ripple’s New Role
XRP rose over 3% following the announcement, briefly spiking to $2.27 before easing back slightly. While the news doesn’t directly affect XRP’s utility, the market clearly sees potential upside from Ripple’s expanding institutional footprint. As the company positions itself at the intersection of stablecoins and central banking, traders appear to be betting that XRP won’t be left behind.
At the time of writing, XRP is sitting at $2.2875.
