Circle Applies for Bank License First
Stablecoin USDC issuer Circle officially applied to the OCC on 7/1 to establish the First National Digital Currency Bank, offering digital asset custody services to institutional clients while being supervised by the federal government.
Regarding this, Circle CEO Jeremy Allaire stated that this application is to proactively comply with the upcoming U.S. stablecoin legislation.
(Does Circle Want to Become a Bank? What is the Purpose of OCC's National Trust Bank Charter)
Ripple Announces Follow-up, RLUSD Becomes "Dual-Regulated" Stablecoin
Following this, on 7/2, Ripple CEO Garlinghouse announced on Twitter (X) that they are also submitting an application for a "National Trust Bank Charter" to the OCC.
Garlinghouse emphasized that Ripple has always valued compliance, and this application aims to make their stablecoin RLUSD one of the few stablecoins regulated by both federal and state governments. Currently, RLUSD is already within the regulatory framework of the New York State Department of Financial Services (NYDFS).

Ripple Also Applies to Fed for Master Account, XRP Rises in Response
In addition to applying for a bank license, Ripple is also simultaneously applying to the Federal Reserve (Fed) for a "Master Account". Garlinghouse stated that if the application is approved, Ripple can directly deposit RLUSD reserves with the Fed, further enhancing fund safety and RLUSD's credibility.
This application was submitted through Standard Custody, a crypto custody institution acquired by Ripple in February 2024.
Garlinghouse added that in the past few years, the crypto industry has suffered from the Biden administration's de-banking (Chokepoint 2.0) actions. However, the situation has now reversed, with Congress beginning to legislate and banks becoming more willing to participate, which led Ripple to take the initiative. After the news broke, XRP rose to $2.29 at one point, ultimately closing at $2.24, with a daily increase of 3.73%.

(Note: Master Account allows the holder to directly trade with the Fed without intermediary banks. Having a master account enables banks to deposit funds and earn interest from the Fed.)
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