Ripple Labs, a fintech company, has announced its intention to apply for a banking license in the US. This decision aims to increase trust in their stablecoin RLUSD and strengthen connections with the traditional financial system.
Goals of the Banking License Application
Ripple's CEO Brad Garlinghouse confirmed the news about the application through a post on X, mentioning that the company is approaching the US Office of the Comptroller of the Currency. He emphasized that this decision is part of the company's 'long-standing compliance roots.'
Impact on the Stablecoin Market
Garlinghouse noted that obtaining the license would create a 'new (and unique!) benchmark for trust in the stablecoin market.' This is due to the company being under both federal and state oversight, as the New York Department of Financial Services already regulates Ripple USD (RLUSD).
Access to the US Central Banking System
Garlinghouse also stated that Ripple has applied for a Master Account with the Federal Reserve through Standard Custody, a digital asset custody firm. If this application is approved, the company will gain access to the US central banking system.
Thus, the submission of the banking license application and the pursuit of access to the central banking system indicate Ripple Labs' serious intent to enhance the level of trust in its RLUSD stablecoin and strengthen its position in the financial market.
