Ripple is making significant strides in the U.S. financial landscape, with CEO Brad Garlinghouse announcing the company’s pursuit of a national banking charter. In a conversation initially reported by CNBC, Garlinghouse revealed that Ripple is targeting an Office of the Comptroller of the Currency (OCC) license, alongside seeking a Federal Reserve master account. He emphasized Ripple’s commitment to regulatory compliance, stating, “We’re not anti-regulation. We want in…the right way.”
If granted, the Ripple National Trust Bank would emerge as a de novo national trust bank located in New York, fully owned by Ripple Labs. This charter, if approved, would place Ripple’s U.S. dollar-backed stablecoin, RLUSD, under direct federal supervision, ensuring compliance with the recently enacted GENIUS Act governing stablecoin issuers.
Launched in December 2024, RLUSD has already integrated into Ripple’s payments network, boasting an outstanding supply of around $730 million, which positions it among the top stablecoins in circulation. Achieving federal recognition could significantly enhance Ripple’s competitive capabilities. With a master account, RLUSD reserves could potentially be held directly at a Reserve Bank, offering streamlined settlement processes for customers.
Nevertheless, analysts caution that access to a Federal Reserve master account is not guaranteed, a fact underscored by recent legal challenges faced by Custodia Bank regarding similar access issues.
In a bid to intertwine philanthropy with regulatory efforts, Ripple announced a substantial $25 million donation in RLUSD to the nonprofits Accion Opportunity Fund and Hire Heroes USA. This funding aims to assist small business owners and military veterans by providing capital, training, and career opportunities. Ripple estimates that this initiative will generate a total economic impact of $1 billion. Garlinghouse highlighted the importance of supporting these two demographics, noting, “Small businesses and veterans are two of the most powerful engines of American progress, yet both face barriers that limit their full economic impact.”
Earlier this year, Ripple made additional pledges, including a $25 million donation in RLUSD to educational nonprofits such as DonorsChoose and Teach For America.
Ripple’s dual approach of establishing regulatory credibility while showcasing RLUSD’s practical applications in both philanthropic and commercial sectors indicates its intent to firmly position itself as a key player in the financial institution and payments innovation space.
