Ripple, Circle Apply for US National Bank Charters

Ripple and Circle, two leading cryptocurrency firms, have both applied for U.S. national banking licenses, signaling a move toward greater regulatory compliance and mainstream adoption. Ripple's application for a national bank charter, confirmed by CEO Brad Garlinghouse, could allow its stablecoin RLUSD to hold reserves directly with the Federal Reserve if approved, influencing XRP's market performance. Circle has applied to establish First National Digital Currency Bank, N.A., a trust bank that would bring USDC reserves under direct OCC oversight and align with emerging U.S. stablecoin regulations like the GENIUS Act. Circle's charter would enable reserve management and institutional custody services, but not traditional deposit-taking or lending. These applications come as U.S. lawmakers consider stricter rules for stablecoin issuers. The developments indicate a shift toward deeper integration of blockchain assets within the traditional financial system.