As cryptocurrency companies continue to move into the traditional financial world, Ripple has joined the trend and applied for a national banking license in the U.S. The company announced today that it has submitted its application to the U.S. Office of the Comptroller of the Currency (OCC). Ripple is the issuer of a stablecoin called RLUSD, which offers cross-border payment solutions and is backed one-to-one by the US dollar. Currently, RLUSD operates under the supervision of the New York Department of Financial Services (NYDFS). However, if it receives a national bank license, RLUSD will also come under the direct supervision of the OCC. Jack McDonald, Ripple’s vice president of stablecoins, said that this dual regulatory structure would set a “new standard for transparency and compliance” in the stablecoin market. According to McDonald, Ripple will also consider offering other crypto services under its banking license in the future. On the other hand, Ripple’s subsidiary Standard Custody & Trust Company applied for a master account with the FED on Monday. If this account is approved, Ripple will be able to store its RLUSD reserves directly with the FED and carry out stablecoin issuance/buyback transactions outside of business hours. McDonald noted that individual investors and crypto-focused companies are the first users of the stablecoin market, but large investment firms and traditional financial institutions are waiting for the regulatory framework to be clarified. Once these regulations are in place, the way will open for institutional investors to enter the market. *This is not investment advice. Continue Reading: BREAKING: Critical Banking License Application Submitted by Ripple – Exciting Developments for XRP
