Ripple applies for US national bank charter as crypto eyes next frontier

[BENGALURU] Crypto firm Ripple is applying for a national bank charter in the United States, its CEO Brad Garlinghouse wrote in a social media post on Wednesday (Jul 2), following a similar move by stablecoin giant Circle.

The move reflects a broader push by crypto firms for regulatory clarity and deeper integration with the traditional financial system.

A charter would allow crypto companies to settle payments faster and cut costs by bypassing intermediary banks, while also providing a stamp of legitimacy after years of what they claim has been regulatory sidelining.

Ripple’s charter will need to be approved by the Office of the Comptroller of the Currency (OCC), a top banking regulator. An OCC spokesperson confirmed it had received a charter application from the company.

The company is also seeking a Fed Master account that would give it access to the Federal Reserve’s payments infrastructure and allow it to hold its stablecoin reserves directly with the central bank, Garlinghouse wrote on X.

Ripple launched its stablecoin, RLUSD, in October last year. While much smaller than dominant players Tether and Circle’s USD Coin, RLUSD still ranks among the biggest stablecoins. It has a market value of about US$470 million, according to data from CoinMarketCap.

Earlier this week, stablecoin firm Circle also said it is applying to create a national trust bank in the United States, weeks after its robust initial public offering.

Stablecoins have gained momentum in recent weeks after the US Senate passed the Genius Act, a development the crypto industry has argued could boost their use through clear regulations.

“The Genius Act will likely support stablecoin adoption in the US while incorporating sensible safeguards for consumer protection and financial stability,” digital asset manager Grayscale’s research team wrote in a report on Wednesday.