Michaela
Ripple Labs Inc., a blockchain-focused fintech firm, has announced that it is applying for a U.S. banking license, positioning itself for potential compliance as lawmakers advance legislation to bring stablecoin issuers under federal oversight. The move mirrors a similar step recently taken by Circle Internet Financial.
Ripple is seeking a banking license from the U.S. Office of the Comptroller of the Currency (OCC), CEO Brad Garlinghouse confirmed in a July 2 post on X. Garlinghouse stated that, if approved, the license would place Ripple under both state and federal oversight, a move he described as a “new benchmark for trust in the stablecoin market.”
“While Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in, this access would allow us to hold $RLUSD reserves directly with the Fed and provide an additional layer of security to future proof trust in RLUSD,” Garlinghouse wrote.
Ripple’s decision to pursue a banking license comes on the heels of Circle’s application to the OCC to establish a national trust bank responsible for managing its stablecoin reserves.
Jeremy Allaire, Circle’s co-founder, chairman, and CEO, characterized the company’s effort to establish a national digital currency trust bank as a significant milestone in advancing a more transparent, inclusive, and digitally native financial system.
The latest developments from both firms come just over two weeks after the U.S. Senate passed the GENIUS Act, a bill aimed at regulating stablecoins by establishing clear standards for issuing U.S. dollar-pegged tokens. Ripple and Circle each offer such assets: RLUSD and USDC, respectively.
“Ripple always has and will continue to build trusted, battle-tested and secure infrastructure,” Garlinghouse wrote. “In a $250B+ market, RLUSD stands out for putting regulation first, setting the standard that institutions expect,” he added.
As competition in the stablecoin space intensifies, industry players are positioning themselves for a future defined by tighter oversight and institutional demand. How companies adapt to evolving regulatory expectations may determine not just market share, but long-term relevance in a rapidly transforming global financial ecosystem.
Following the announcement, the price of XRP, the digital asset developed by Ripple, stood at $2.28 at the time of writing, representing a 3.88% increase over the past 24 hours, according to data from CoinMarketCap.
Read More
- GENIUS Act Heads to House as Trump Demands Speedy Approval
- Judge Rejects Ripple, SEC Deal to Slash $125M XRP Penalty
- Circle’s Jeremy Allaire Says Stablecoins Near Breakout Moment
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
