Ripple has secured final federal approval to operate a national trust bank, strengthening regulatory oversight of its RLUSD stablecoin.
The decision gives Ripple a stronger regulatory framework for managing reserves backing its dollar-pegged token.
It also creates new opportunities for institutional digital asset custody under federal supervision. However, the charter carries restrictions that distinguish Ripple’s operations from traditional commercial banks.
The Office of the Comptroller of the Currency (OCC) granted final approval to Ripple National Trust Bank on October 26.
Ripple submitted its application in July 2025 and received conditional approval that December.
Ripple CEO Brad Garlinghouse welcomed the decision on X, saying cryptocurrency companies and banks “work better together.”
Ripple national trust bank to oversee RLUSD reserves
According to Ripple, its national trust bank will manage reserves backing Ripple USD (RLUSD).
The institution will also serve as collateral trustee for RLUSD holders and provide digital asset custody services to institutional clients.
However, Ripple’s Standard Custody & Trust Company will continue issuing RLUSD under New York Department of Financial Services supervision.
Consequently, the OCC will oversee reserve management, while New York regulators will supervise stablecoin issuance.
Ripple launched RLUSD in December 2024 across the XRP Ledger and Ethereum networks.
Since then, its market capitalization has reached approximately $2.5 billion.
According to Artemis, RLUSD represents roughly 0.8% of the $310 billion stablecoin market.
Meanwhile, Tether’s USDT and Circle’s USDC collectively control approximately 82% of the market.
The federal charter could help Ripple attract institutions seeking clearer regulatory oversight of stablecoin reserves.
OCC approval expands Ripple’s regulatory standing
Despite receiving federal approval, Ripple National Trust Bank cannot accept deposits or issue commercial loans.
The institution also lacks Federal Deposit Insurance Corporation coverage, reflecting restrictions on national trust banking operations.
Instead, its charter establishes federal supervision over reserve custody and fiduciary responsibilities.
Ripple joins a small group of cryptocurrency companies pursuing federally regulated trust banking services.
Circle received final OCC approval in July, bringing its USDC reserve operations under federal oversight.
Coinbase received conditional approval in April, while Crypto.com and Stripe-owned Bridge secured similar approvals in February.
However, these approvals have attracted opposition from some lawmakers.
In May, Senator Elizabeth Warren argued that the charter approvals violated the National Bank Act and threatened financial stability.
Crypto advocacy organization The Digital Chamber disputed those concerns, emphasizing the limited fiduciary activities permitted under trust charters.
Ripple awaits Federal Reserve master account decision
Ripple’s OCC approval follows several efforts to expand its regulated financial infrastructure.
The company acquired Standard Custody in mid-2024, subsequently launched RLUSD, and expanded institutional brokerage services through Ripple Prime.
Nevertheless, Ripple continues pursuing another regulatory milestone.
Alongside its July 2025 trust charter application, Ripple requested a Federal Reserve master account.
Such access would allow Ripple to hold RLUSD reserves directly at the Federal Reserve.
It could also enable payment settlements without relying on intermediary commercial banks.
However, securing Federal Reserve access remains difficult for cryptocurrency companies.
Custodia Bank previously pursued a master account through a prolonged legal dispute but ultimately failed to secure approval.
Unlike Custodia, Ripple now holds a final federal trust charter.
Still, the Federal Reserve has not approved Ripple’s application.
For XRP investors, the OCC decision provides no immediate direct price catalyst.
Instead, the approval advances Ripple’s institutional infrastructure strategy as competition intensifies across the regulated stablecoin market.
