SAN FRANCISCO– Ripple, which manages cross-border payments and a dollar-backed stablecoin called RLUSD, has become the latest crypto firm to apply for a national banking license.
As the CU Daily has reported, the company is one of many cryptocurrency companies looking to move into mainstream financial services.
RLUSD is currently subject to state oversight through the New York Department of Financial Services. A national trust bank charter would also place RLUSD within the OCC’s remit.
“The dual nature of that regulation would basically have set a new bar for transparency and compliance in the stablecoin market,” Jack McDonald, senior vice president of stablecoins at Ripple, said in a statement..
Moving forward, Ripple said it would consider offering other crypto services through its banking license.
Master Account Application
Separately, Ripple subsidiary Standard Custody & Trust Company applied for a Federal Reserve master account on Monday. If granted, the account would allow Ripple to custody the reserves directly with the Fed, and issue and redeem stablecoins outside of normal banking hours, according to the company.
Deep-Pocketed Firms Step Up
McDonald noted that while individual investors, high-net-worth individuals and crypto-native companies have fueled the initial growth of stablecoins, deep-pocketed investment firms and other institutions have been waiting until the market came under greater regulatory oversight before entering the fray.
The rush of crypto-companies seeking bank licenses has been fed by the progress of enabling legislation in Congress, including the GENIUS Act.
