Ripple is taking steps to integrate its RLUSD stablecoin more deeply into the regulated financial system by applying for a national banking license.
Support for RLUSD Federal Regulation
Ripple has submitted an application for a national banking license from the U.S. Office of the Comptroller of the Currency (OCC), which would allow the company to operate under federal oversight. This will provide direct regulation for RLUSD, which is currently overseen by the New York Department of Financial Services (NYDFS). Ripple CEO Brad Garlinghouse stated that federal oversight will enhance trust in RLUSD and simplify compliance.
Similar Steps by Other Crypto Firms
Ripple's move towards obtaining federal licensing mirrors actions taken by other companies in the crypto space, including Circle, Paxos, and Coinbase, which are also pursuing national licenses. This trend points to a growing alignment between crypto firms and the traditional financial regulatory framework in the U.S.
Impact on the Stablecoin Market
If Ripple obtains the banking license, it would be able to offer more integrated financial services, including custody, payments, and asset management. This could play a crucial role in the stability and sustainability of RLUSD as the stablecoin market exceeds $250 billion. Garlinghouse believes that this approach could set a new standard for the stablecoin sector.
The application for a national banking license will support RLUSD's positioning as a reliable product in the market and could facilitate deeper integration of the crypto industry into the U.S. financial system.
