Ripple is seeking a national banking license from the office of the controller of the currency following the conclusion of the court case with the SEC.
The company’s CEO Brad Garlinghouse confirmed on 2 July that if granted, the license will allow Ripple to have both state and federal oversight, which will boost trust in the stablecoin market.
Garlinghouse added that Ripple has also applied for a Fed Master account that would allow the company to hold RLUSD reserves directly with the Fed and provide an additional layer of security to future proof trust in RLUSD.
Despite court case
Ripple has been in court for years concerning the status of XRP as a security or a store of value like Bitcoin.
Even though a previous ruling in 2023 said the token is not a security, the court recently brought an end to the case between the company and the SEC, as Ripple decided to drop its appeal.
The end of the 5-year old case has no doubt opened the door to more opportunities, including the application for a national bank license.
Meanwhile, Ripple has also started other moves that are likely to put it on a higher pedestal in the coming years.
It is partnering with financial services company OpenPayed to offer Faster, simpler, more transparent global payments.
Also recently, the XRP Ledger has launched its EVM-compatible sidechain on its mainnet, opening the door to possibilities such as support for wallets, dapps etc.
New crypto banks coming
Ripple is the latest company to apply for a national bank license in the U.S. USDC stablecoin issuer Circle has also applied for the same license, making it the first crypto company to apply for such a position.
With this new trend, more companies are likely to emerge, leading to unprecedented growth for the crypto industry especially as legal backing is coming to the industry.
What do you think?
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