- Ripple applies for trust bank to support stablecoin RLUSD operations.
- Fed Master account access could reshape Ripple’s payment infrastructure.
- No mention of XRP, but future integration remains a possibility.
Ripple Labs officially applied to the Office of the Comptroller of the Currency (OCC) to establish a limited-purpose national trust bank. The public release of Volume 1 of the application has offered a closer look at Ripple’s regulatory ambitions and strategic direction.
As revealed by XRP analyst WrathofKahneman on X, the proposed entity will not serve retail customers. The Community Reinvestment Act will not apply to the trust bank, as no deposits will be taken and no lending will be practiced. Its activities will all be related to fiduciary services and the management of stablecoin reserves.
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The new banking organization will be a business-to-business (B2B) entity that offers support to the Ripple stablecoin RLUSD. This framework enables Ripple to create regulatory infrastructure for tokenized finance and eliminate it, together with consumer banking operations.
Interestingly, the document does not state anything about XRP, and this is seen as a deliberate act to avoid overlapping regulation.
Ripple wants to come up with a banking-compliant subsidiary to handle tokenization and reserve custody with federal oversight. This would put Ripple in a good spot to expand its digital asset business in a fully regulated way.
Trust Bank to Power RLUSD Operations and Enable Regulated Token Finance
The proposed Ripple National Trust Bank is being explicitly designed to support the RLUSD stablecoin. By creating a dedicated trust bank, Ripple ensures that its tokenization strategy aligns with federal regulations without the complexities of retail financial services.
Ownership of the bank will remain with Ripple Labs, and private stock has been issued to company executives involved in the effort. A certain secrecy regarding this deal has caused some speculation on what Ripple plans to do going forward, such as an IPO. Nevertheless, these results are not confirmed.
Besides the charter application, Ripple plans to access a Federal Reserve Master account as well. In case of a grant, the company would have the possibility to directly settle transactions with the Federal Reserve and have RLUSD reserves at the central bank. This has the potential to greatly enhance the speed and efficiency of Ripple’s stablecoin payments infrastructure.
Ripple’s dual move to establish a national trust bank and secure Fed access marks a clear shift toward regulatory integration. If approved, the trust bank would anchor Ripple’s RLUSD operations while opening pathways for broader participation in regulated digital finance.
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