XRP issuer Ripple has formally applied for a U.S. national banking license with the Office of the Comptroller of the Currency (OCC), Ripple CEO Brad Garlinghouse confirmed on Wednesday.

The application aims to allow Ripple to operate as a federally regulated bank, which would place it under the supervision of federal authorities such as the Office of the Comptroller of the Currency (OCC). In addition, Ripple’s RLUSD stablecoin is already overseen by the New York Department of Financial Services (NYDFS), a state regulator, giving the company regulatory exposure at both the state and federal levels.

The license would enable Ripple to custody its own reserves, offer both crypto-based and traditional banking services, and bring its RLUSD stablecoin under OCC regulation.

This story is an excerpt from the Unchained Daily newsletter.

With a national bank charter, Ripple could access the Federal Reserve directly, pending approval of a Fed master account for its subsidiary, Standard Custody. 

It follows a similar application from Circle earlier this week and comes amid new U.S. legislation advancing through Congress, such as the GENIUS Act, requiring stablecoin issuers to meet federal standards.