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- Ripple gets a conditional green light for National Trust Bank, putting RLUSD under federal supervision.
- Garlinghouse fires at banking lobbyists, framing Ripple’s charter as proof that crypto plays by the rules.
Ripple has secured conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. This approval, issued on Friday, puts the firm one step closer to launching a federally supervised financial institution.
The OCC also granted similar preliminary approvals to Circle, BitGo, Paxos, and Fidelity Digital Assets to transition from state-chartered trust banks to national charters.
Ripple filed its application for a national charter in July. At the time, the odds seemed low, as crypto firms have consistently struggled to obtain these licenses. The OCC’s decision signals a major shift in how regulators are responding to digital asset firms that seek formal integration into the banking system.
Ripple’s charter, once finalized, will authorize the company to hold and manage assets for customers, and to process payments more quickly than traditional methods allow. However, the charter will not permit Ripple or the other approved firms to accept deposits or issue loans.
Ripple to Operate Under Dual Regulatory Oversight
This conditional approval also places its RLUSD stablecoin under direct oversight of both federal and state regulators. While the OCC will handle federal supervision, the New York Department of Financial Services (NYDFS) will continue its role on the state level.
CEO Brad Garlinghouse emphasized this structure, describing it as the most stringent compliance framework available in the United States. Garlinghouse said,
“Ripple just received conditional approval from the USOCC to charter Ripple National Trust Bank. This is a massive step forward – first for $RLUSD, setting the highest standard for stablecoin compliance with both federal (OCC) & state (NYDFS) oversight.”
Ripple’s move puts it in the same compliance space as traditional financial institutions, contradicting long-standing claims that crypto firms resist regulation. This step is part of a broader effort to meet the same obligations as federally regulated banks, including rules around consumer protection and operational transparency.
Garlinghouse Takes On Banking Lobbyists
Brad Garlinghouse also took the opportunity to push back against critics from traditional banking circles. He accused lobbyists of attempting to limit competition by misrepresenting how crypto companies operate. According to Garlinghouse, firms like Ripple are proving that compliance and innovation can coexist under formal supervision.
He challenged critics directly by questioning,
“To the banking lobbyists – your anti-competitive tactics are transparent. You’ve complained that crypto isn’t playing by the same rules, but here’s the crypto industry – directly under the OCC’s supervision and standards – prioritizing compliance, trust and innovation to the benefit of consumers. What are you so afraid of?”
Currently, Anchorage Digital remains the only digital asset firm with a fully approved national trust bank charter. The OCC, which supervises 60 national trust banks, has signaled interest in opening the sector to more players. Comptroller of the Currency Jonathan Gould stated,
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy.”
Before Ripple National Trust Bank can officially begin operations, the OCC must still grant final approval. If that happens, Ripple will join a short list of crypto firms allowed to serve clients nationwide under a federal banking framework.
