Ripple is stepping deeper into traditional finance. Just days after stablecoin issuer Circle announced it had applied for a U.S. national bank charter, Ripple Labs has officially thrown its hat in the ring—and it’s not stopping there.
CEO Brad Garlinghouse confirmed the application in a July 2 post on X (formerly Twitter), signaling a major shift in how crypto-native companies are positioning themselves within America’s financial system.
Ripple Eyes Trust Charter, But It’s About More Than Paperwork
The announcement didn’t come out of the blue. Ripple, already heavily regulated through state oversight like New York’s BitLicense, wants to widen its federal footprint. That means direct engagement with the Office of the Comptroller of the Currency (OCC), the agency in charge of federal bank charters.
A successful application would open the door to fiduciary services—things like asset custody, trust services, and maybe more.
But this isn’t just about prestige.
Ripple is pitching the move as a trust play. “A new (and unique!) benchmark for trust in the stablecoin market,” Garlinghouse posted. And he might not be wrong—federal and state compliance layered together is still rare for crypto.
What’s at Stake: Stablecoins, Credibility, and the Fed
Ripple’s stablecoin, RLUSD, launched late last year. It’s not a giant yet—just under half a billion dollars in market cap—but Ripple is clearly playing the long game.
Circle’s USDC? $62.2 billion.
Tether’s USDT? A jaw-dropping $158.4 billion.
So yeah, Ripple’s got some catching up to do.
Which brings us to the second, and arguably more ambitious, part of this plan: the Federal Reserve Master Account. Through its subsidiary Standard Custody & Trust Co., Ripple has applied for direct access to the Fed.
That’s not just bureaucratic bragging rights. If approved, it means:
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RLUSD reserves could be held directly at the Fed
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Ripple skips middlemen and correspondent banks
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Near-instant settlement could become a reality
Sid Powell, CEO of Maple Finance, wasn’t shy about the implications: “It would mark a significant milestone in the convergence of crypto and traditional finance.”
But There’s Precedent—And Not All of It Is Encouraging
Ripple isn’t the first crypto firm to eye this route. Anchorage Digital already snagged a national bank charter during the Biden administration. Others, like Fidelity Digital Assets and BitGo, are waiting in line or prepping applications.
Then there’s Custodia Bank. They tried to get a Fed Master Account with their Wyoming-issued crypto banking license. The Kansas City Fed said no. Custodia sued. Lost. And now it’s appealing.
That doesn’t exactly scream “easy path ahead.”
Still, there’s a difference. Ripple’s trust application is at the national level. And it’s coming at a time when the U.S. government appears—at least somewhat—receptive to finally spelling out the rules.
Crypto Week on Capitol Hill Could Shift the Landscape
There’s a buzz on the Hill. Literally.
The week of July 14 has been dubbed “Crypto Week” by House Republicans. Several major bills—including the GENIUS Act and the STABLE Act—are headed for floor votes. These bills aim to lock down how stablecoins and crypto firms operate under U.S. law.
And while Congress debates the fine print, crypto firms are lining up.
Patrick Gerhart from Telcoin put it plainly: “The window is opening. Getting these licenses isn’t just about compliance—it’s a power play to claim legitimacy.”
The timing isn’t lost on Ripple. They’re aiming to be one of the first movers, planting a flag in regulated finance before the rules solidify.
A Growing Roster of Crypto Firms Racing for Charters
Here’s how the banking license race currently looks across crypto:
| Company | Charter Applied For | Status |
|---|---|---|
| Ripple Labs | National Trust Charter + Fed Master Account | Pending |
| Circle | National Trust Charter | Application submitted |
| Anchorage Digital | National Bank Charter | Approved (first in U.S.) |
| Fidelity Digital Assets | National Trust Charter | Reportedly applied |
| BitGo, Coinbase, Paxos | Banking Licenses (state/federal) | Reportedly considering applications |
| Custodia Bank | SPDI (Wyoming) + Fed Master Account | Rejected, lawsuit ongoing |
| Kraken Financial | SPDI (Wyoming) | Has not applied for Master Account |
As more players throw in applications, the OCC and the Fed are likely to face a bottleneck—something Powell and Gerhart both acknowledged. The question now is how fast federal regulators are willing to move.
Speed Matters—and It Might Be the Deciding Factor
Let’s be real: the approval process for both the OCC charter and a Fed Master Account isn’t fast. And it’s not transparent either.
Still, the pace could shape how quickly other firms jump in. A greenlight for Ripple might trigger a rush. A denial could chill the waters. Either way, this is shaping up to be a pivotal moment in how crypto integrates with the old-school system.
As Gerhart put it, “We’re entering a ‘first-to-market’ moment.” Meaning? Whoever gets there first won’t just win credibility—they’ll define the standard.
