Ripple's stablecoin, RLUSD, has received a significant credibility boost through its collaboration with AMINA Bank, the first bank globally to offer custody and trading services for RLUSD.
Support from AMINA Bank
On July 2, AMINA Bank, a regulated Swiss institution, became the first bank worldwide to support RLUSD. This partnership will provide institutional clients with the ability to utilize custody and trading services for RLUSD tokens. Following this news, RLUSD's 24-hour trading volume surged by 20%, reaching $60 million, which increased the token's market capitalization to over $469 million.
Significance of the License for Ripple
Just before the announcement of the partnership, Ripple applied for a national banking charter in the U.S., which would allow the company to operate across the country legally. If the license is granted, it could significantly change the game for Ripple, allowing it to conduct business without navigating state-level requirements and legally hold RLUSD reserves under federal supervision.
Competition in the Stablecoin Sector
Acquiring the banking license would open doors for Ripple to compete with firms like Circle and Fidelity, who are also seeking regulated licenses to comply with the forthcoming GENIUS Act requirements. Stricter regulations for stablecoin issuers demand backing reserves with real assets and closer oversight from regulators, potentially reshaping how traditional financial institutions interact with tokenized cash.
AMINA Bank's support marks a significant step towards integrating RLUSD into traditional financial structures, which could greatly impact the stablecoin market and strengthen trust from regulated financial entities.
