Ripple takes a bold step by applying for a U.S. bank charter, which could fundamentally reshape the financial and regulatory landscape for XRP and RLUSD.
National Bank Status: Legitimacy at a New Level
By seeking a national bank charter, Ripple aims to come under the direct supervision of the Office of the Comptroller of the Currency (OCC), akin to major banks like JPMorgan. This shift marks a significant milestone in Ripple's evolution from a blockchain payment provider to a full-fledged financial institution.
RLUSD’s Rise: From Stablecoin to Institutional Powerhouse
At the core of Ripple's banking ambitions is RLUSD, a stablecoin launched in December 2024. Ripple's application includes a request for a Federal Reserve master account, which, if approved, would enable Ripple to hold RLUSD reserves directly at the Fed.
XRP Utility and Institutional Adoption
Ripple's On-Demand Liquidity (ODL) platform, leveraging XRP for instant cross-border settlements, already provides real-world utility. With national bank legitimacy and Federal Reserve connectivity, XRP becomes attractive to banks and financial institutions seeking efficient payment solutions.
The application for a bank charter by Ripple is a significant move towards establishing the first crypto-native bank, offering a wide range of financial services built on the XRP Ledger.
