Ripple Wins Final OCC Approval for National Trust Bank, Bringing RLUSD Under Federal Oversight
Ripple has secured final OCC approval for the Ripple National Trust Bank, placing RLUSD stablecoin reserves under federal oversight and providing institutional digital asset custody services.
Ripple has secured authorization to operate a federally chartered trust bank, following final approval for the Ripple National Trust Bank granted by the U.S. Office of the Comptroller of the Currency (OCC) on October 26. This full clearance concludes an application process that began in July of last year.
Ripple CEO Brad Garlinghouse announced the milestone on X, asserting that crypto and banks “work better together.” This final sign-off arrives less than a year after Ripple obtained conditional approval in December 2015.
RLUSD Reserves Move Under Federal Supervision
The newly approved trust bank has a specific yet vital mandate. According to Ripple’s announcement, the institution will manage the reserves supporting Ripple USD (RLUSD), serving as collateral trustee for those assets on behalf of RLUSD holders. Additionally, it is authorized to provide digital asset custody services for large institutional clients.
Token issuance will continue through the Standard Custody & Trust Company, a limited-purpose trust company owned by Ripple and regulated by the New York Department of Financial Services (NYDFS). Consequently, two separate regulators will oversee different operations of the stablecoin: New York handles issuance, while the OCC supervises the backing reserves.
RLUSD is a dollar-pegged stablecoin operating on the XRP Ledger and Ethereum. Since its introduction in December 2024, the asset has reached a market capitalization of $2.5 billion. Within the broader stablecoin sector—valued at $310 billion—this represents a minor portion. Data from Artemis indicates that RLUSD accounts for roughly 0.8% of total supply, whereas Tether’s USDT and Circle’s USDC command about 82% of the market.
Given its relatively small market share, this regulatory milestone is crucial for Ripple. As a late market entrant, establishing regulatory credibility is one of the few avenues available to attract corporate and bank treasuries away from dominant, established competitors.
A Trust Charter Comes With Clear Limits
It is important to note that Ripple did not receive a commercial banking license, meaning the Ripple National Trust Bank cannot accept deposits or issue loans. Similar to most national trust charters, it will not carry FDIC insurance.
Instead, the charter provides Ripple with a federal regulator for the operational area scrutinized most closely by institutions: verifying that the funds backing a stablecoin genuinely exist and are properly segregated. Corporate treasurers and funds evaluating RLUSD alongside alternative dollar tokens can now point to a federally supervised reserve trustee.
Ripple Joins Circle While Coinbase Waits
Only a select group of cryptocurrency entities have achieved this level of regulatory approval. Circle obtained final OCC clearance in July, placing USDC reserves under federal oversight. Meanwhile, Coinbase maintains the conditional approval it secured in April, and Crypto.com along with Stripe-owned Bridge have remained at that identical stage since February.
This wave of federal charters has faced opposition in Washington. In May, Senator Elizabeth Warren contended that the approvals breach the National Bank Act and introduce systemic financial risks. Conversely, the crypto advocacy organization The Digital Chamber defended the measures, pointing out that trust charters are restricted to fiduciary functions and that the companies voluntarily pursued federal oversight.
The Fed Master Account Is the Next Milestone
XRP traders seeking an immediate price catalyst are unlikely to find one here. The approval primarily highlights Ripple’s corporate maturation, following its acquisition of Standard Custody in mid-2024, the rollout of RLUSD, and the addition of prime brokerage via Ripple Prime.
A larger objective remains pending. Alongside its charter submission in July 2025, Ripple applied for a Federal Reserve master account. Securing this account would allow Ripple to hold RLUSD reserves directly at the Fed and process settlements independently of intermediary banks.
Historically, digital asset firms have faced significant hurdles in obtaining master accounts. Custodia Bank engaged in a prolonged legal battle with the Fed over its application before ultimately being rejected. Ripple enters this evaluation phase with an authorized federal charter—an asset Custodia lacked. The application remains under review.
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