July 3, 2025 – Ripple is making a bold bid to cement its role in the U.S. financial system by applying for a national banking license with the Office of the Comptroller of the Currency (OCC), signaling its ambition to bring its stablecoin RLUSD under federal oversight. This strategic move, first reported by The Wall Street Journal, could position Ripple as one of the most regulated stablecoin issuers in the U.S. market.
Ripple Seeks Federal Charter to Bolster Stablecoin Legitimacy
The OCC application, confirmed by Ripple CEO Brad Garlinghouse in a post on X, marks a significant step in the company’s long-term regulatory strategy. If approved, Ripple would operate under dual regulatory authority—federally via the OCC and at the state level through its existing New York Department of Financial Services (NYDFS) license.
“A new (and unique!) benchmark for trust in the stablecoin market,” Garlinghouse wrote, highlighting Ripple’s intention to set new standards for compliance in the crypto sector.
The license would not only bring RLUSD under direct federal oversight but also open the door for Ripple to offer additional crypto financial services typically reserved for traditional banking institutions.
RLUSD: Poised for Growth in a Tightening Regulatory Climate
Launched in December 2024, RLUSD is Ripple’s U.S. dollar-backed stablecoin and currently holds a market cap of around $470 million, according to CoinMarketCap. While it trails far behind giants like Tether and Circle’s USDC, RLUSD ranks among the top stablecoins by circulation and is gaining traction, especially among institutions seeking regulated digital assets.
Ripple’s OCC application follows closely on the heels of a similar move by Circle, which recently applied to charter the First National Digital Currency Bank. The trend comes amid increasing pressure from Washington to implement a stablecoin regulatory framework.
Earlier this month, the Senate passed the GENIUS Act, which mandates full dollar reserves and monthly disclosures for all stablecoin issuers. The legislation, which enjoys support from President Trump, is awaiting a House vote and is expected to accelerate mainstream adoption of stablecoins in the U.S.
According to a recent Grayscale report, “The GENIUS Act will likely support stablecoin adoption in the U.S. while incorporating sensible safeguards for consumer protection and financial stability.”
Ripple is also pursuing a Federal Reserve master account, which would grant the company direct access to the Fed’s payment infrastructure and allow it to hold reserves at the central bank—further legitimizing RLUSD as a fully compliant and federally integrated stablecoin.
Regulatory Roadblocks: Ripple’s Legal Battles Persist
Despite these strategic advancements, Ripple continues to grapple with regulatory hurdles. On June 26, a federal court rejected a $50 million settlement proposal between Ripple and the U.S. Securities and Exchange Commission (SEC) concerning its institutional XRP sales.
Judge Analisa Torres declined to alter a prior judgment, stating there were no “exceptional circumstances” to justify modifying the original ruling. This leaves Ripple restricted from offering XRP to institutional investors—though retail trading remains unaffected.
The case stems from the SEC’s 2020 lawsuit accusing Ripple of raising $1.3 billion through unregistered securities offerings. Both parties have agreed to drop their respective appeals, signaling the nearing end of a years-long legal battle that has shaped much of Ripple’s regulatory posture.
Technical Momentum: Upgrades and Expansion Continue
While navigating legal complexities, Ripple has doubled down on infrastructure development. RippleX, the firm’s technical division, recently rolled out XRP Ledger v2.5.0, introducing features tailored for institutional use. Notable upgrades include escrowed stablecoin support (XLS-85) and advanced transaction bundling (XLS-56).
These enhancements appear to be paying off—daily active addresses on the XRP Ledger have surged from 35,000 to over 295,000 in recent months.
Additionally, Ripple has integrated cross-chain protocol Wormhole, enabling interoperability with more than 35 blockchains. This move is seen as a strategic step to expand RLUSD’s reach and usability across the broader crypto ecosystem.
A Defining Moment for Ripple’s Future
Ripple’s application for a national banking license signals a crucial inflection point. With federal regulation potentially within reach, the company is positioning RLUSD to be among the most transparent and compliant stablecoins on the market.
Yet, challenges remain. The unresolved legal constraints on XRP, coupled with a rapidly evolving policy environment, mean Ripple must carefully navigate both innovation and regulation. Still, its pursuit of a banking license—and the technical advancements backing it—illustrate Ripple’s broader ambition: to lead the convergence of crypto and traditional finance in the United States.
