Ripple’s Banking Ambitions Mark a Pivotal Step in the Crypto Sector

In a move that signals the accelerating convergence of cryptocurrency and traditional banking, Ripple Labs has confirmed it is applying for a national bank charter from the U.S. Office of the Comptroller of the Currency (OCC). CEO Brad Garlinghouse announced the decision on social media platform X, stating the application underscores Ripple’s “long-standing compliance roots” and its broader vision for bringing regulatory legitimacy to the stablecoin sector.

The application follows in the footsteps of Circle Internet Group, issuer of the USDC stablecoin, which earlier sought similar licensing, indicating a growing trend among blockchain-based companies to align more closely with the infrastructure and credibility of traditional financial institutions.

If approved, Ripple would become one of the few crypto-native firms to hold a federal banking license, placing it under dual oversight from both the OCC and the New York Department of Financial Services (NYDFS), which already regulates Ripple’s RLUSD stablecoin. This level of regulatory scrutiny could position RLUSD as a uniquely trusted digital dollar alternative in a marketplace increasingly focused on safety and compliance.

“This would set a new,  and unique, benchmark for trust in the stablecoin market,” Garlinghouse noted, emphasizing the role of comprehensive regulatory oversight in establishing credibility among institutional investors and banking partners.

A national bank charter would allow Ripple to offer a wider array of banking services, including direct custody of digital assets, payment settlement, and fiat on-ramps, all without the need for third-party banking relationships. This vertical integration could prove transformational, enabling Ripple to serve as both the issuer and the bank for its stablecoin ecosystem, tightening control over compliance and customer experience.