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- Ripple National Trust Bank will reportedly not offer retail banking services but will serve institutional clients under CRA exemptions.
- Analysts have noted the omission of XRP in Ripple’s trust bank application, suggesting a deliberate move to separate regulatory processes from the token.
Brad Garlinghouse’s blockchain startup Ripple is making a bold move by applying for a limited-purpose national trust bank license. The firm has reportedly submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) for the trust bank. This new trust bank will help manage reserves for the RLUSD stablecoin.
Ripple National Trust Bank To Support RLUSD Stablecoin
Ripple’s filing seeks to establish a limited-purpose trust institution that would manage reserves for its dollar-backed stablecoin, RLUSD, and build infrastructure to support tokenized financial products. While the filing does not indicate any immediate plan for direct access to the Federal Reserve, some analysts view it as a potential step toward future regulatory engagement.
Unlike traditional banks, the proposed entity would not offer retail services. The filing clarifies that, under exemptions from the Community Reinvestment Act (CRA), the institution would not accept deposits, issue loans, or serve retail customers. Instead, it will focus solely on business-to-business trust services.
Ripple-partner SBI Holdings has recently released a report noting that the Ripple Payment solution is being actively used by more than 100 institutions, as reported by CNF.
The company also plans to integrate RLUSD, Ripple’s U.S. dollar-backed stablecoin, into its operations later this year. The goal is to introduce reliable USD-backed liquidity into Japan’s financial ecosystem while deepening ties with U.S. markets.
Trust Bank Application Doesn’t Consider XRP
Analysts have noted the absence of XRP in Ripple’s trust bank application. This could be a strategic move from Ripple to separate the regulatory process from its affiliated token. Although Ripple has long tied its blockchain infrastructure to XRP, its exclusion in this filing appears aimed at avoiding additional legal scrutiny. However, the future integration of XRP-related services has not been ruled out.
According to the filing, the proposed trust bank would be wholly owned by Ripple Labs, with executive shares issued internally. Portions of the application remain confidential, leading to speculation that the move could be part of a broader strategy, potentially tied to Ripple’s long-rumored plans for an initial public offering (IPO).
Ripple’s RLUSD stablecoin has been hitting new milestones in recent times. The blockchain firm has partnered with financial heavyweight BNY Mellon to provide institutional-grade custodial services for its U.S. dollar-backed stablecoin, RLUSD. With BNY Mellon overseeing approximately $45 trillion in assets, the firm will now manage RLUSD reserves at a regulated custody level.
The collaboration underscores Ripple’s strategy to position RLUSD as more than just a digital asset, aiming to integrate it into traditional financial systems and regulated banking infrastructure.
