Ripple Makes Bold Move with National Bank Charter Application
Ripple made a significant move on July 2 by applying for a national bank charter with the Office of the Comptroller of the Currency (OCC). CEO Brad Garlinghouse announced this development, stating that the filing aims to bring Ripple USD (RLUSD) under federal supervision while still maintaining oversight by the New York Department of Financial Services. This move is expected to set a new standard for trust in the stablecoin market.
In addition to the national bank charter application, Ripple subsidiary Standard Custody & Trust Co. also submitted a request for a Federal Reserve master account on June 30. If approved, this account would allow the trust to hold RLUSD reserves directly at the Fed, rather than through commercial banks, similar to how custodial banks handle client funds. This would make RLUSD the first stablecoin with direct central bank access, a significant milestone in the cryptocurrency space.
The dual oversight for RLUSD, with supervision from the OCC and potential access to a Fed account, is seen as a strategic move by Ripple to address institutional due diligence requirements that can limit the use of stablecoins. Data from Artemis shows that RLUSD’s supply has grown by nearly 490% in 2025, exceeding $455 million, with a record transaction volume of $2.6 billion in June.
Ripple’s stablecoin already undergoes monthly attestations and holds cash and short-dated Treasuries in bankruptcy-remote custody accounts to ensure transparency and compliance. Jack McDonald, senior vice-president for stablecoins at Ripple, believes that the national charter and master account will raise the bar for trust and regulatory compliance in the stablecoin market.
The announcement of the charter application coincided with Brad Garlinghouse’s denial of any formal relationship with Linqto, a private equity marketplace currently under investigation by the Securities and Exchange Commission and the Department of Justice for alleged unregistered share sales. Garlinghouse clarified that Ripple never sold equity to Linqto and ceased approvals for Linqto-related secondary transfers in late 2024.
Linqto’s former CEO, William Sarris, is facing accusations of inflating Ripple share prices and marketing special-purpose-vehicle units to non-accredited investors. These allegations have raised concerns about potential violations of securities rules by pooling private-company stock in opaque structures.
The OCC will now review Ripple’s business plan, capitalization, risk controls, and management history as part of the national bank charter application process. This process typically includes a public comment period and may take more than 12 months to complete.
Overall, Ripple’s move to seek a national bank charter and access to a Federal Reserve master account represents a significant step towards regulatory compliance and transparency in the stablecoin market.