Ripple, the digital asset company, which is closely linked to the XRP Ledger network, on Wednesday applied for a national banking license in the Comptroller of the Currency Office (OCC)confirmed a spokesman to Coindesk.
The license allows the company to expand its crypto services and operate across state lines under federal regulation. Ripple emits the $ 440 million rlusd stableecoin regulated by the New York Department of Financial Services (Nydfs)and also provides custody of digital asset.
The Wall Street Journal first reported the news earlier on Wednesday.
XRP
The original cryptocurrency of the payments-focused XRP headbox networks, advanced 3% on the news.
Ripple’s application comes after USDC issuer company Circle (CRCL) Also filed for a similar license earlier this week, a sign that stablecoin companies are seeking federal supervision as US legislation to regulate stableecoins and the crypto market structure. The House of Representatives currently has the US Senate StableCOin Law Proposal before that.
Crypto Custodian Anchorage Digital already has a federal charter.
“If it is approved we would have both state (via Nydfs) and federal supervision, a new (and unique) Benchmark for confidence in the stableecoin market, “Ripple CEO Brad Garlinghouse said in an X -post.
Garlinghouse said the company also applied for a master account at Federal Reserve earlier this week via standard custody, the New York-based Trust and Coartor Firm Ripple acquired last year. Master accounts allow banks and deposit institutions to direct access to Federal Reserve, rather than requiring them to review intermediate banks.
If obtained, a bold account would allow Ripple to save its stablecoin reserves as US Treasury with the Central Bank and “provide an extra layer of security for future evidence of RLUSD,” Garlinghouse said.
Too long, cryptophocused companies such as Kraken and Caitlin Long’s Custodia Bank have tried unsuccessfully to get accounts on bold.
Update (July 2, 18:40 UTC): Adds comments from Brad Garlinghouse on Bank Charter and Fed Master Account application.
