Ripple Seeks US Banking License Following Circle’s Lead
Ripple Labs has taken a significant step to establish its presence in the US financial sector by applying for a national bank charter from the OCC.
Ripple’s Banking License Application
Ripple has made a strategic move to align with new regulations by seeking a United States banking license and a Master Account with the Federal Reserve. This initiative is aimed at subjecting Ripple’s RLUSD stablecoin to dual state and federal oversight, following the lead of Circle, the issuer of USDC, which has also sought OCC approval.
Regulatory Landscape and Stablecoin Policies
Ripple’s CEO, Brad Garlinghouse, announced the formal application for a national bank charter from the Office of the Comptroller of the Currency (OCC). If approved, Ripple would come under the regulatory purview of both federal and state authorities, setting a new standard for trust in the stablecoin market.
Market Response and Future Outlook
Market reaction to Ripple’s move has been positive, with XRP experiencing a 2.87% increase to $2.24 following the announcement. This development comes in the wake of the US Senate passing the GENIUS Act, which outlines regulatory requirements for stablecoin firms, designating the OCC as a key federal overseer for major players in the sector.
Expert Commentary from Sam Boolman, ChainIntel’s Lead Analyst
According to Sam Boolman, the move by Ripple to apply for a US banking license reflects the company’s strategic positioning to navigate the evolving regulatory environment. This step not only demonstrates Ripple’s commitment to compliance but also signals a broader trend of traditional financial institutions and crypto firms converging within the regulatory framework.
Peter Thiel’s Involvement and Erebor Bank
In parallel, billionaire Peter Thiel is backing the launch of Erebor, a new bank focused on startups and crypto ventures. Erebor aims to fill the void left by the collapse of Silicon Valley Bank, catering to high-risk ventures that face challenges accessing traditional banking services.
European Banking Developments
Additionally, KBC Bank in Belgium is set to offer crypto investment opportunities through its Bolero platform, becoming one of the first major Belgian banks to provide such services. This aligns with a broader trend in Europe, where banks like Deutsche Bank and BBVA are exploring crypto offerings to meet growing investor demand.
Overall, these developments underscore the evolving landscape of traditional banking embracing digital assets and the increasing intersection between fintech, crypto, and regulatory frameworks.
