Ripple Applies for U.S. Bank Charter, Eyes Federal Reserve Access

The company, best known for the XRP Ledger and its long-standing legal battles with U.S. regulators, now seeks to establish itself as a national trust bank, according to a report by Bloomberg. This would allow Ripple to hold customer assets and offer a suite of financial services, particularly around its RLUSD stablecoin, under direct federal oversight. The application marks a strategic pivot for Ripple from litigation defense to regulatory legitimacy.

Ripple’s application to the OCC comes amid rising institutional interest in regulated stablecoins and follows the company's launch of RLUSD, its U.S. dollar-pegged digital token, in June. RLUSD is already regulated by the New York Department of Financial Services (NYDFS), but a federal charter would grant Ripple broader operational authority across the country and beyond.

Brad Garlinghouse, Ripple’s CEO, stated on X:

Ripple’s banking ambitions mirror those of other crypto-native firms like Circle, which also recently applied for a national trust bank license. The timing is notable: both applications come as Congress pushes forward the GENIUS Act, legislation aimed at establishing federal standards for stablecoin issuers and granting oversight to agencies like the OCC.

As part of its banking ambitions, Ripple has also filed for a master account with the Federal Reserve, a significant step that, if granted, would allow the company to hold reserves directly with the U.S. central bank. This would give Ripple the same level of access to the payments infrastructure as traditional banks and government-sponsored financial institutions.

In practical terms, the master account would enhance the trust and transparency behind RLUSD, reducing counterparty risks by ensuring that reserves backing the stablecoin are safeguarded directly at the Fed. Garlinghouse has emphasized that this additional layer of security could make RLUSD more attractive to institutions wary of third-party custodians or opaque reserve mechanisms.

Ripple’s applications come at a moment of regulatory momentum. The GENIUS Act, which passed the Senate in June with bipartisan support, is expected to move to the House later this year. The bill proposes mandatory registration of major stablecoin issuers and seeks to establish federal guardrails around reserve management, redemption rights, and compliance.

Should the GENIUS Act become law, firms with federal bank charters could gain a first-mover advantage in a newly defined stablecoin regime. By applying now, Ripple is positioning itself to operate within that framework from day one.

This proactive approach also contrasts with the company’s posture during its multiyear legal battle with the SEC. That case, which concluded earlier this year, centered around whether XRP was a security.

In many ways, the bank application represents a new chapter for Ripple, one focused less on fighting regulation and more on embedding itself within it.

If approved, Ripple's bank could offer services beyond just stablecoin issuance. A national trust charter would allow the company to custody crypto assets, settle transactions, and facilitate cross-border payments with institutional partners, potentially using both RLUSD and XRP as liquidity tools.

It would also place Ripple among a small but growing cohort of crypto firms with access to U.S. banking infrastructure. While the path to full approval is complex and highly scrutinized, success would give Ripple a foundation for competing not just with crypto firms, but with fintech banks, payment processors, and even traditional financial institutions.

Ripple’s shift from courtroom defense to regulatory ambition is emblematic of a broader evolution in the digital asset space. As lawmakers move toward comprehensive crypto legislation and regulators establish clearer guidelines, companies that embrace oversight, rather than resist it, may gain a durable edge.