TL;DR

• Ripple Labs has applied to the Office of the Comptroller of the Currency (OCC) for a U.S. national bank charter.
• CEO Brad Garlinghouse says this adds federal oversight to its existing state-level regulation, setting a new industry standard.
• The move follows Circle’s similar banking push, and comes as lawmakers shape federal rules for stablecoin issuers.
• If approved, Ripple would gain deeper credibility with financial institutions and regulators, further blurring the line between crypto and traditional finance.

Ripple Labs is pushing further into the traditional financial system by applying for a national bank charter with the OCC, the federal agency that supervises national banks. The announcement follows a broader trend: earlier this year, Circle Internet Group, known for its USD Coin stablecoin, signaled a desire to become a regulated bank.

While Ripple has already secured state-level regulation notably with the New York Department of Financial Services (NYDFS), the addition of federal oversight would represent a major milestone. In a post on X, CEO Brad Garlinghouse said  Ripple is remaining true to its compliance-first roots by seeking this dual regulation, which he called “a new (and unique!) benchmark for trust in the stablecoin market.”

Why Now? Stablecoin Legislation Drives Strategy

The move comes as Congress makes strides in creating federal stablecoin regulations, referencing the GENIUS Act and its pathway to national oversight for stablecoin issuers. By establishing a federal presence, Ripple is positioning itself preemptively, ahead of formal policy requirements and potential legislative mandates.

Circle took similar steps, suggesting banks may increasingly replace unregulated entities as issuers of tokenized dollars. Ripple’s timing reflects a strategic push to align with regulators and secure institutional partnerships, especially those hesitant to interact with unregulated crypto firms.

The Differences a Charter Makes

A national bank charter offers several advantages over state-only licensing:

• Federal oversight increases credibility with banks, clearinghouses, and payment networks.
• It allows nationwide operations without having to get individual state licenses.
• These entities are subject to regular compliance exams by the OCC.
• It signals greater transparency and commitment to investor protection.

Ripple’s goal is to reduce friction in traditional finance networks and gain acceptance among banks and settlement systems that require regulated counterparties.

Final Thought

Ripple’s bid for a national bank charter is more than a business move, it’s a signal of crypto’s evolving relationship with regulators and traditional financial systems. If approved, it will be a first-of-its-kind model: a blockchain-native firm operating under the same oversight as banks.

Whether this sets a pattern for other crypto companies depends on how regulators view Ripple’s dual compliance and its ability to operate under traditional bank rules. Success could accelerate normalization of digital assets in mainstream finance while failure may raise questions about how much crypto must adapt to fit the system. Either way, Ripple’s charter application marks a turning point in crypto’s journey toward legitimacy.