In a series of strategic moves, Ripple Labs is positioning itself to enter the regulated financial sector as a fully chartered bank. The blockchain payments firm has applied for a U.S. national banking license and announced a major partnership to enhance its stablecoin capabilities. These developments highlight Ripple’s ambition to bridge the gap between traditional finance and digital assets.
Building a Robust Stablecoin Ecosystem
Ripple has partnered with OpenPayd, a London-based banking-as-a-service provider, to build advanced infrastructure for its U.S. dollar-pegged stablecoin, RLUSD. This collaboration integrates Ripple’s global payments network with OpenPayd’s fiat currency systems, enabling businesses to mint and redeem RLUSD tokens directly.
The partnership aims to streamline cross-border payments and improve treasury management solutions for enterprises. By offering seamless conversion between fiat and digital currencies, Ripple and OpenPayd are addressing critical needs in global liquidity and dollar access. Ripple Payments already processes over $70 billion in transactions annually across more than 90 markets—a capability that will be significantly enhanced through this new infrastructure.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, emphasized the importance of interoperability between traditional finance and digital assets. This integration is expected to reduce costs and increase transaction speeds for businesses operating internationally.
Pursuing a Federal Banking Charter
On the same day as the partnership announcement, Ripple formally applied for a national banking license with the Office of the Comptroller of the Currency (OCC). If approved, this charter would allow Ripple to operate under federal oversight and provide services across state lines without needing individual state licenses.
This application represents a major shift in Ripple’s strategy. It follows the recent conclusion of Ripple’s legal disputes with the U.S. Securities and Exchange Commission (SEC). Additionally, Ripple’s subsidiary, Standard Custody & Trust Company, has applied for a Federal Reserve master account. If granted, this would allow Ripple to hold reserves for RLUSD directly with the Fed, reducing counterparty risk and increasing operational stability.
A federal banking charter would not only enhance Ripple’s credibility but also set a new compliance benchmark for other crypto-native firms considering similar moves. CEO Brad Garlinghouse described the dual strategy of partnership and regulatory pursuit as a “unique trust benchmark” for the industry.
Market Context and Competitive Landscape
Ripple’s stablecoin, RLUSD, entered the market in December 2024 and currently has a market capitalization of approximately $450 million. While this is modest compared to market leaders like Tether (USDT) and USDC, which have market caps of $100 billion and $62 billion respectively, RLUSD has shown promising growth.
In the second quarter of 2025, RLUSD became the leading fiat-backed stablecoin on the XRP Ledger. It has also received regulatory approvals from the New York Department of Financial Services (NYDFS) and the Dubai Financial Services Authority (DFSA).
Ripple is not the first company to seek a federal banking charter. Circle Internet Financial, the issuer of USDC, has also applied for an OCC national trust bank charter. Other firms, like Anchorage Digital, have pursued similar status in the past. Regulatory approval is not guaranteed, as applicants must meet strict capital, compliance, and operational requirements.
What This Means for the Industry
Ripple’s recent actions could have far-reaching implications for both the crypto and traditional finance sectors. A successful banking charter application would mark the first time a major crypto-native company operates as a federally regulated bank. This could encourage institutional adoption of digital assets and stabilize the regulatory environment for stablecoins.
The partnership with OpenPayd strengthens the practical utility of RLUSD, making it easier for businesses to integrate digital dollars into their operations. Combined with potential federal oversight, these developments may increase trust and usage of Ripple’s offerings.
Market reaction has been positive so far, with XRP’s price increasing by 2–5% following the announcements. The coming months will be crucial as regulators review Ripple’s applications. Their decision could influence how other crypto firms approach banking and compliance in the future.
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Frequently Asked Questions
What is Ripple’s goal with the banking license application?
Ripple aims to become the first major crypto-native company to operate as a federally chartered bank in the U.S. This would allow it to offer seamless services across state lines and enhance trust in its financial products.
How does the partnership with OpenPayd benefit RLUSD users?
The collaboration enables direct minting and burning of RLUSD tokens, improving liquidity and reducing transaction costs for businesses. It integrates traditional banking systems with digital asset networks for smoother operations.
How does RLUSD compare to other major stablecoins?
RLUSD is newer and smaller than established stablecoins like USDT and USDC, but it has grown rapidly and gained regulatory approvals in key markets like New York and Dubai.
What are the main challenges Ripple faces?
Ripple must navigate complex regulatory requirements and compete with well-established players. Approval from the OCC and Federal Reserve is not guaranteed and depends on meeting strict financial and compliance standards.
Could this affect the overall crypto market?
Yes. If successful, Ripple’s transition into a regulated bank could set a precedent for other crypto firms, potentially leading to broader institutional adoption and clearer regulatory frameworks.
What happens if Ripple’s application is approved?
Ripple would be able to operate under federal banking regulations, hold reserves with the Federal Reserve, and offer a wider range of financial services with enhanced credibility.