Ripple’s Ambitions for Compliance
In a significant development for the regulated cryptocurrency landscape, Ripple has initiated its ambitions to become a fully compliant financial entity by applying for a national trust bank charter. This effort is aimed at enhancing the reliability and custodial standards for its stablecoin offerings.
Application Details
Earlier this month, the blockchain payment company submitted its application to the U.S. Office of the Comptroller of the Currency (OCC) under the control number 2025-Charter-342347, intending to establish the Ripple National Trust Bank. The proposed bank is set to be based in New York City at 111-119 W. 19th Street, 6th floor, with a charter identifier of 25364.
Ripple’s charter request includes seeking trust powers that would allow the new bank to provide services such as the custody of digital assets and fiduciary management, all while being monitored directly by federal authorities. Brian Spahn, located in Ripple’s San Francisco office, has been appointed as the main contact for this initiative. The OCC has announced an open comment period for the public, concluding on August 1.
Regulatory Approach for Stablecoin
This move aligns with Ripple’s recent announcement regarding its intention to implement a dual regulatory approach for its stablecoin, Ripple USD (RLUSD), which will combine oversight from the New York Department of Financial Services (NYDFS) and potential federal regulation through the OCC. CEO Brad Garlinghouse emphasized on the social media platform X that acquiring a national bank charter would establish Ripple as a pioneer in compliance, paving the way for both state and federal supervision in the stablecoin sector, enhancing market trust.
Industry Trends and Legislative Context
Ripple’s application comes amid a wider trend among cryptocurrency companies aiming for banking charters, largely driven by the anticipated GENIUS Act. This upcoming legislation, which is currently pending approval from the House after passing the Senate, aims to set strict federal guidelines for stablecoins. These would impose requirements for complete dollar backing, transparency, and adherence to anti-money laundering (AML) and know your customer (KYC) regulations.
Future Operations and Security
In addition, Ripple’s affiliate, Standard Custody & Trust Company, is also seeking a master account with the Federal Reserve. Garlinghouse commented that gaining such access would enable the company to manage RLUSD reserves directly with the Federal Reserve, thereby bolstering security and credibility in the stablecoin’s future operations.
