Ripple, the company behind the XRP cryptocurrency and the RLUSD stablecoin, is taking bold steps to reshape the future of stablecoins in the US. The firm recently announced its application for a national banking licence and a Federal Reserve master account, a move that immediately sparked interest in the crypto world and caused XRP to rise 4%.

With this strategy, Ripple is aiming to set new standards in transparency, trust, and regulatory compliance in the stablecoin market, just as the US inches closer to passing clearer laws for digital currencies.

Ripple’s Plan: State to Federal Oversight

Ripple’s RLUSD stablecoin is currently regulated at the state level, under the New York Department of Financial Services (NYDFS). However, the company now wants to go a step further by applying for a national banking licence from the Office of the Comptroller of the Currency (OCC). If approved, Ripple would become the first major stablecoin issuer to operate under both state and federal oversight.

This move would allow Ripple to manage RLUSD with much tighter controls and could attract large institutional players who have so far stayed cautious due to unclear rules.

Ripple CEO Brad Garlinghouse shared on X, “If approved, we would have both state and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.”

RLUSD: Building Trust Through Regulation

RLUSD, Ripple’s stablecoin launched in late 2024, has a current market cap of around $469 million. While that figure is much lower than the giants Tether (USDT) and USD Coin (USDC), Ripple believes that stronger regulation could help close that gap.

Jack McDonald, Ripple’s Head of Stablecoins, said the company is aiming to set “a new bar for transparency and compliance in the stablecoin market.” He also noted that many institutional investors have been waiting on the sidelines until clearer regulatory protections were in place.

By bringing RLUSD under direct federal supervision, Ripple hopes to prove that it is the most secure, transparent, and reliable stablecoin on the market.

Accessing the Fed: A Game-Changer

Alongside the OCC licence, Ripple’s trust company subsidiary, Standard Custody & Trust, has applied for a Federal Reserve master account. If granted, this would be a major milestone. It would allow Ripple to:

• Hold RLUSD reserves directly with the Federal Reserve
• Process token issuance and redemptions beyond regular banking hours
• Eliminate reliance on third-party banks for reserve management

Garlinghouse emphasised that this direct access would offer “an additional layer of security to future-proof trust in RLUSD.” This kind of setup is rare among crypto firms and could give Ripple a major edge in appealing to serious investors.

The Bigger Picture: Regulation Is the New Crypto Trend

Ripple’s aggressive regulatory push is happening at a key time. US lawmakers are moving ahead with the Genius Act, which could soon require all stablecoin issuers to hold bank licences. In anticipation of this, several firms are adjusting their strategies:

• Circle, the company behind USDC, has applied for a national trust bank charter after its IPO.
• Anchorage Digital is still the only crypto-native firm with an OCC licence, granted in 2021.

Ripple’s efforts to get ahead of these changes could position RLUSD as a go-to option for regulated crypto investments, especially for institutions seeking safer options.

The 4% surge in XRP reflects growing market confidence in Ripple’s direction, showing that regulation is no longer a threat.

Ripple is clearly betting on regulatory strength as the key to winning the stablecoin race. Its twin applications for a national banking licence and a Federal Reserve master account, mark a bold move towards deeper integration with the traditional financial system.