- OCC grants final approval to Ripple National Trust Bank, Garlinghouse says on X.
- The new bank will manage RLUSD reserves and act as collateral trustee for users.
- The charter reportedly bars insured deposits and regular commercial loans for the new bank.
The money behind Ripple’s RLUSD stablecoin now has a federal overseer. The Office of the Comptroller of the Currency has granted final approval to Ripple National Trust Bank, a charter CEO Brad Garlinghouse announced on X ahead of the company’s Swell conference in New York, which runs October 27 to 29.
What Changes Under a Federal Charter
RLUSD is already regulated at state level. It is issued by Standard Custody & Trust Company, a New York-regulated trust company, and that does not change. The new bank is a separate entity that will manage the segregated reserves and act as collateral trustee for RLUSD holders.
What is new is a second layer of oversight. The bank faces capital, liquidity and compliance requirements, and the OCC can examine its controls and its handling of reserve and custody work. Ripple also gains a federally supervised platform for institutional clients, which Garlinghouse described as crypto and banks working better together.
There are limits. The bank cannot take insured deposits or make ordinary commercial loans. Federal supervision means inspection, not a guarantee. The $2.5 billion of RLUSD in circulation is backed by cash, short-term US Treasuries and other approved liquid assets, with BNY as the main reserve custodian, the same account said.
The gain is therefore RLUSD’s, not XRP’s. The charter strengthens the reserve and custody structure behind a dollar stablecoin, and XRP demand would follow only indirectly, if the bank or its clients choose to use the token.
- What could change it: The bank’s custody arm taking on institutional XRP holdings, or RLUSD issuance shifting toward the XRP Ledger.
- The open question: What the bank chooses to custody once it opens. Until then, XRP’s outlook rests more on broader market direction.
What the Charter Does Not Allow
Ripple National Trust Bank cannot take insured deposits or make ordinary commercial loans. Its remit covers reserve management, fiduciary custody of digital assets for enterprise clients and related trust activities. It will face capital, liquidity and compliance requirements, and the OCC can examine its controls.
Garlinghouse framed the approval as proof that crypto and banks work better together, pairing real innovation with real accountability and federal oversight, and writing that the shift is happening “from within” the system. The Blockchain Association congratulated Ripple, calling it a step toward bringing digital asset firms into the US banking system.
A Legal Fight Remains
Community banking groups have sued the OCC over the wider policy that lets crypto companies run national trust banks. They argue the agency is stretching the law by giving these firms a federal charter without every rule that applies to deposit-taking banks. The outcome could affect Ripple and other crypto firms with similar charters. However, the agency recently said it is encouraging community banks to build stablecoin capabilities.
Related: XRP Ledger Expands Institutional Reach as Aviva Tokenizes £22B Fund
Related: Ripple Targets Round-the-Clock Corporate Finance With New AI Tools
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