Today's XRP news: Ripple confirms application for a U.S. banking license, Ripple enters a new era of regulatory recognition.

Ripple CEO Brad Garlinghouse recently made a significant statement, confirming that the company has officially applied for a national banking license in the United States, while also seeking eligibility for a Federal Reserve master account. This move will fundamentally change the integration landscape between Crypto Assets and TradFi. This bold initiative marks a crucial step for the blockchain payment giant in its transformation towards becoming a formal Financial Institution, potentially setting a new standard for the entire crypto industry.

Ripple National Trust Bank: The Historic Integration of Blockchain and TradFi

According to an exclusive report by CNBC, Ripple has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish the "Ripple National Trust Bank" headquartered in New York. This new Financial Institution will be wholly owned by Ripple Labs and, once approved, will become the first federally regulated bank controlled by a Blockchain company.

"We are not against regulation. We want to regulate in the right way," Garlinghouse emphasized in an interview. This statement reflects Ripple's long-standing position: to seek innovation within a compliant framework rather than to evade regulation.

Financial technology analyst Sarah Johnson commented, "This is an important sign of maturity in the crypto assets industry. Ripple is no longer content to be an alternative to TradFi; rather, it seeks to become a part of the regulated financial system, which will have profound implications for the entire industry."

RLUSD Stablecoin: A New Benchmark for Regulatory Compliance

One of the core motivations behind Ripple's application for a banking license is to establish a stronger regulatory foundation for its USD-backed stablecoin RLUSD. Launched in December 2024, RLUSD currently has a circulating supply of approximately $730 million, making it one of the market-leading stablecoins.

After obtaining a banking license, RLUSD will be directly regulated by the federal government, ensuring full compliance with the newly enacted GENIUS Act requirements. This act establishes a stringent regulatory framework specifically for stablecoin issuers, requiring full reserve backing.

More importantly, obtaining the Federal Reserve's main account will allow Ripple to directly deposit the reserve funds of RLUSD at the reserve bank, significantly simplifying the settlement process, improving efficiency, and reducing costs. This advantage may give RLUSD significant competitiveness in the institutional market.

"This is the next logical step in the development of stablecoins," said blockchain consultant Michael Chen. "Direct access to the Federal Reserve system will make RLUSD a true digital dollar alternative, rather than just another crypto asset."

Regulatory Challenges and Future Outlook

Despite Ripple's ambitious plans, analysts point out that obtaining a main account with the Federal Reserve is no easy task. The Federal Reserve retains broad discretion over such access, and Custodia Bank's recent lawsuit highlights the challenges that crypto-related businesses face in this regard.

"The Federal Reserve (FED) has always taken a cautious approach towards crypto assets companies," explained financial regulatory expert Robert Williams. "Ripple needs to demonstrate that its business model is not only innovative but also robust and compliant with the safety standards of the existing financial system."

However, Ripple's relationship with regulators has significantly improved in recent years. The company's long-standing legal dispute with the Securities and Exchange Commission (SEC) has essentially concluded, with the court ruling that XRP's retail transactions do not constitute securities. This victory has cleared an important obstacle for the company to apply for a banking license.

Charity: Strategic Initiatives for Building Social Trust

While advancing regulatory compliance, Ripple is also actively demonstrating the practicality and social value of its stablecoin in the real world. The company recently announced a donation of $25 million in RLUSD to non-profit organizations Accion Opportunity Fund and Hire Heroes USA to support small business owners and veterans.

"Small businesses and veterans are two powerful engines of progress in the United States, but both face obstacles that limit their full economic potential," Garlinghouse stated. The company estimates that this initiative will bring about up to $1 billion in total economic benefits.

This is not Ripple's first large-scale charitable donation. Earlier this year, the company donated $25 million in RLUSD to the educational non-profit organizations DonorsChoose and Teach For America.

Market observers believe that these charitable activities not only demonstrate the practicality of RLUSD, but also represent Ripple's strategic initiative to build social trust and regulatory reputation.

Industry Impact and Market Response

The news of Ripple applying for a banking license has garnered widespread attention in the Crypto Assets and TradFi sectors. Analysts believe that if successful, this will set a precedent for other Blockchain companies to enter the regulated financial space.

"This could be a watershed moment for the crypto assets industry," said the chief analyst of the crypto assets research firm BlockInsight. "Ripple is establishing a template that shows how blockchain companies can embrace regulation without sacrificing innovation."

The market reacted positively to this news, with the price of XRP rising following the announcement. Institutional investors are particularly focused on this development, as obtaining a banking license and a Federal Reserve master account will significantly reduce the compliance risks associated with collaborating with Ripple and its products.

"This is an important signal for institutions seeking to enter the Crypto Assets space but are concerned about regulatory uncertainty," said a senior executive at a large asset management company who wished to remain anonymous. "Ripple is building a bridge connecting TradFi and Blockchain innovation."

Future Outlook: A New Paradigm for Digital Payments

Ripple's dual strategy—establishing regulatory credibility while emphasizing the practicality of RLUSD in charitable and commercial uses—indicates that the company is ready to solidify its position as a Financial Institution and payment innovator.

If Ripple successfully obtains a banking license and a Federal Reserve master account, it will be able to provide a wider range of financial services, including custody, settlement, and payment processing, while maintaining its innovative advantages in blockchain technology.

"We are witnessing a paradigm shift in the payment industry," Garlinghouse said in a recent speech, "the future financial institutions will combine the stability of traditional banks with the efficiency of blockchain technology to provide better services to global customers."

As Ripple continues to advance its banking license application, the industry will closely monitor this process and its impact on the entire crypto assets sector. Regardless of the outcome, Ripple's initiative has already marked the beginning of a new phase of integration between blockchain and TradFi.