As more crypto firms make inroads into mainstream finance, Ripple is applying for a banking license with the U.S. Office of the Comptroller of the Currency (OCC).
Although the company is best known for its XRP cryptocurrency and ledger, Ripple launched a stablecoin, RLUSD, last year. If the banking license is approved, the firm would be subject to federal and state oversight, and the New York Department of Financial Services would regulate RLUSD.
Ripple’s application comes just days after Circle submitted its own request for a bank charter. If approved, Circle would establish a new entity—the First National Digital Currency Bank, N.A. With charters in place, Circle and Ripple could potentially offer tailored services to institutional clients in the future, including tokenization of real-world assets.
Ripple’s leadership also confirmed the company has applied for a Master Account with the Federal Reserve. If granted, this would allow Ripple to hold RLUSD reserves directly with the Fed, providing its stablecoin with an added layer of security.
Moving to Capitalize
Both Circle and Ripple are moving quickly to capitalize on the recent passage of the GENIUS act, which establishes a regulatory framework for U.S. stablecoins.
The legislation has driven a surge in stablecoin interest in recent months. Major retailers like Walmart and Amazon, along with tech giant Meta, are among the many players considering the launch of their own brand-specific stablecoins.
Financial services provider Fiserv has also unveiled plans to launch a compliance-geared stablecoin designed for use by its network of financial institutions.
Between Checking and Crypto
As more traditional players explore stablecoins, crypto companies are expanding into mainstream financial services. For example, crypto exchange Kraken announced it is launching a P2P payments app that could potentially compete with fintechs like PayPal and Venmo.
Meanwhile, new platforms are emerging to bridge the gap between checking and crypto accounts. Ripple unveiled plans to develop a cross-border payments solution in Europe through a partnership with OpenPayd, which provides the infrastructure to move certain regional fiat currencies into RLUSD—and vice versa.
Similarly, Circle plans to roll out Circle Payment Network, a cross-border system designed to facilitate bank transfers between USDC and fiat.
These launches underscore the continued push of crypto companies into the heart of traditional financial services—a trend likely to accelerate as regulatory clarity improves in the U.S.