In a landmark development for the intersection of cryptocurrency and traditional finance, the U.S. Office Of The Comptroller of the Currency (OCC) has granted Ripple a partial approval to charter the “Ripple National Trust Bank.”
Ripple National Trust Bank Gains Partial Approval
Ripple CEO Brad Garlinghouse revealed the development today, noting that the company has received conditional approval from the U.S. OCC to charter a National Trust Bank.
According to the CEO, this represents a significant step forward for RLUSD, the network’s stablecoin, which has established the highest standards for stablecoin compliance, earning approval from the OCC and NYDFS.
Meanwhile, Ripple’s charter represents one of the most consequential regulatory shifts in the U.S. crypto landscape to date, as it will allow the network to hold and manage assets on behalf of its clients. Further, the OCC’s conditional approval places the network among a small group of innovators permitted to operate as a bank.
According to crypto reporter Eleanor Terrett, the OCC granted Ripple conditional approval alongside four other organizations, including Circle, Fidelity, Paxos, and Bitgo. Ripple and Circle gained partial approval to operate as national trust banks, while the rest were approved to operate as state-chartered companies.
Broader Industry Context
Interestingly, Ripple’s move is not happening in isolation. Stablecoin issuers Circle and Paxos have also pursued national trust bank charters with the OCC, reflecting a broader industry trend toward federal oversight of digital asset firms.
Before now, Anchorage Digital was the only crypto platform with a national trust bank charter among the 60 national trust banks under the OCC’s supervision.
Meanwhile, Regulators and lawmakers in Washington have increasingly focused on integrating cryptocurrencies with the traditional financial system, even as they deliberate on new frameworks for regulating stablecoins.
These efforts include congressional hearings on the digital asset market structure and legislative proposals aimed at codifying standards for stablecoin issuance and bank-like activities.
Next Steps and Compliance Conditions
While the conditional approval is significant, full charter status hinges on Ripple meeting specific OCC conditions. These typically include operational safeguards, detailed compliance structures, and ongoing supervisory oversight.
When commenting on the recent conditional approval, Comptroller Jonathan V. Gould mentioned that each candidate’s application was rigorously reviewed and that each company must meet the OCC’s additional conditions before gaining full approval status. However, Gould added that new entrants help to diversify the banking system and expand access to financial products.
Meanwhile, this development undoubtedly marks a pivotal moment for the blockchain industry as the Ripple National Trust Bank could be fully within the regulated U.S. banking system in the coming months, if the network meets the OCC’s conditions. It is also worth noting that the network recently announced a strategic partnership with European Bank AMINA to provide cross-border payment services for its clients.
Temitope Olajide
