In a strategic move that could reshape the stablecoin landscape, Ripple has officially applied for a banking license in the United States—bringing crypto one step closer to the heart of the financial system.

Following Circle’s Lead in the Banking Race

Ripple CEO Brad Garlinghouse confirmed via X that the company has submitted an application to the Office of the Comptroller of the Currency (OCC) for a national banking charter. If approved, Ripple USD (RLUSD) will be under federal and state regulatory oversight, complementing the supervision already in place by the New York Department of Financial Services.

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This move closely follows Circle’s similar application to create a national trust bank for overseeing USDC reserves. The GENIUS Act, recently passed by the U.S. Senate, appears to be accelerating such actions by laying out a clear framework for stablecoin issuers under OCC supervision.

Ripple Aims for Fed-Level Access

Going a step further, Ripple has also applied for a Master Account with the Federal Reserve. This access would enable the firm to hold RLUSD reserves directly with the central bank—enhancing transparency and trust in its stablecoin infrastructure.

The application was submitted via Standard Custody, a crypto custody firm acquired by Ripple in February 2024.

Following these announcements, XRP surged over 3%, reaching $2.27 according to CoinGecko—signaling investor confidence in Ripple‘s regulatory strategy.

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Standard Custody’s Regulatory Edge

Standard Custody CEO Jack McDonald will be named as Ripple’s senior vice president of stablecoins under the terms of the agreement, therefore serving both Standard Custody’s CEO role and another.

Pointing to Standard Custody’s regulatory approval from the New York Department of Financial Services (NYDFS), one of the toughest financial authorities when it comes to digital assets, Ripple underlined Standard Custody’s licensing as a fundamental capability of the digital asset custodian.

Expanding Ripple’s Custody Services

Standard Custody comes after Metaco, another digital asset custody company acquired by Ripple for $250 million in 2023. The purchase of Metaco by Ripple was highlighted by the conviction that, as banks strive to offer their clients digital asset custodial services, the institutional crypto custody market will reach $10 trillion by 2030.

Within the context of custody services, real-world asset tokenization—a market that Chainlink estimates might reach over $800 trillion if all the capital assets in the world are tokenized—is included.

Tokenization: The Next Frontier

For companies like Ripple Labs, Chainlink, and Algorand, real-world asset tokenization has become a top priority; the developing tokenizing sector is generally thought to be the next great frontier for cryptocurrencies, blockchain, and digital assets.

Leveraging Chainlink’s CCIP interoperability protocol, the Depository Trust and Clearing Corporation (DTCC) released in May its report of a real-world asset tokenizing pilot program run between the DTCC and several major banks, including JP Morgan, Edward Jones, and BNY Mellon.

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The initiative sought to replicate bringing real-world data onchain and evaluate the tokenizing of fund data. The DTCC’s research found several advantages of blockchain tokenization, including automated data management and lowering of the need for record-keeping, real-world transparent APIs for consumers, and the possibility to produce “dynamic data management across the life cycle of an asset.”

In the end, the pilot study gave banks and other institutional operators hoping to use blockchain tokenization in their products and services—such as automated data feeds or trading applications—insight into possible future uses.

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