Ripple, a prominent cryptocurrency company, has officially applied for a national bank charter in the United States. This significant step aims to provide a more robust platform for its RLUSD stablecoin.
Goals of Ripple's Bank Charter Application
Ripple's application for a national bank charter has been confirmed by CEO Brad Garlinghouse. The company seeks to achieve a status that would put it under both federal and state oversight. This would create a unique environment of trust in the stablecoin sector.
"True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC. If approved, we would have both state and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market," Garlinghouse remarked.
RLUSD's Role in Market Stabilization
RLUSD, a dollar-backed stablecoin, was launched in December 2024 and currently has a market value of around $470 million. With a national bank charter, Ripple would be able to directly engage with the U.S. central bank for holding RLUSD reserves. This would enhance the security of its backing and improve settlement infrastructure.
Financial Metrics and Market Interest
According to recent data, XRP, the token linked to Ripple's ecosystem, is up 4% in the past 24 hours with trading volume reaching $3.65 billion, an increase of 38%. The rising interest in XRP coincides with recent regulatory changes and applications for bank charters by companies like Circle.
Ripple's application for a national bank charter marks an important step in its effort to strengthen its position in the stablecoin market. With enhanced regulation, Ripple aims to create safer and more transparent conditions for its users.
