Ripple Labs has officially filed an application with the Office of the Comptroller of the Currency (OCC) to create a limited-purpose trust bank. This initiative aims to support its stablecoin RLUSD and strengthen its regulatory framework.
Ripple's Regulatory and Financial Strategy
As noted by XRP analyst WrathofKahneman, the proposed entity will not serve retail customers. The Community Reinvestment Act will not apply, as no deposits will be taken and no lending will be practiced. All activities will relate to fiduciary services and the management of stablecoin reserves.
Establishment of Trust Bank for RLUSD
The new bank will be a business-to-business entity that provides support for the RLUSD stablecoin. This specialized trust bank will allow Ripple to align with federal regulations without engaging in retail financial services.
Access to Federal Reserve Master Account
Ripple is also planning to gain access to a Federal Reserve Master account. If granted, this would allow the company to directly settle transactions with the Federal Reserve and hold RLUSD reserves at the central bank, significantly improving the speed and efficiency of its payment infrastructure.
Ripple's plans to establish a trust bank and secure access to a Federal Reserve account highlight its commitment to integrating into a regulated financial environment. If approved, this will open new pathways for participation in regulated digital finance.
