Ripple Labs is seeking to deepen its ties with traditional finance by applying for a banking license and a master account with the Federal Reserve.
Ripple's Banking License Application
Ripple Labs has formally applied for a banking license from the Office of the Comptroller of the Currency (OCC). CEO Brad Garlinghouse announced on X that this license would help Ripple comply with new regulatory standards in the stablecoin area. If approved, Ripple would be under both federal and state regulatory oversight. Garlinghouse believes this will create a new standard of trust in the stablecoin industry. In addition to the OCC application, Ripple also applied for a master account with the Federal Reserve, allowing the company to hold its RLUSD reserves directly with the Fed.
New Bank for Startups by Peter Thiel
A group of billionaires, including Peter Thiel, is reportedly working on launching a financial institution called Erebor, focused on serving startups and cryptocurrency companies. Erebor has applied for a banking license and will concentrate on providing banking services and loans to high-risk ventures. This effort aims to fill the void left by the collapse of Silicon Valley Bank. The bank's failure in 2023, caused by rapidly rising interest rates, highlighted vulnerabilities in the venture capital landscape, and Erebor is now seeking to occupy its place.
KBC Bank to Offer Crypto Investments
KBC Bank, one of Belgium's largest banks, is preparing to allow its customers to invest in cryptocurrencies through its Bolero investment platform. The bank is currently undergoing analysis to become recognized as a Crypto-Asset Service Provider (CASP). If the initiative goes ahead, KBC will become the first major Belgian bank to offer crypto investment services to retail clients, aligning with the broader trend among European banks exploring crypto solutions.
These initiatives by Ripple, Erebor, and KBC Bank indicate a continuing trend of integrating the cryptocurrency sector with the traditional financial system, which is fostering clearer regulatory standards.
