Ripple Seeks US Banking License Following Circle’s Lead as Stablecoin Regulation Evolves

Ripple Labs has filed applications for both a US banking charter with the Office of the Comptroller of the Currency (OCC) and a Federal Reserve master account, positioning its RLUSD stablecoin under comprehensive federal and state oversight. This strategic move mirrors similar regulatory compliance efforts by Circle, issuer of USDC, and aligns with requirements under the newly passed GENIUS Act.

CEO Brad Garlinghouse emphasized these applications will establish new trust standards in the stablecoin industry. The Fed master account - applied for through Ripple's recently acquired custody arm Standard Custody - would enable direct reserve holdings with the central bank, described as a critical safeguard mechanism.

Market response was positive, with XRP rising 2.87% to $2.24 following the announcement. This regulatory push coincides with broader banking sector developments, including Peter Thiel-backed Erebor's plans to launch a startup-focused bank filling the void left by Silicon Valley Bank's collapse.

Simultaneously, European adoption continues as Belgium's KBC Bank prepares to offer Bitcoin and Ethereum investments through its Bolero platform after obtaining Crypto-Asset Service Provider (CASP) status - marking another mainstream financial institution embracing digital assets.