Ripple Applies for US Banking License, XRP Price Jumps

Ripple’s CEO Brad Garlinghouse confirmed on July 3, 2025, that Ripple has applied for a national banking charter in the US, aiming to integrate RLUSD with federal financial systems.

Ripple’s application for a US national banking charter could boost its credibility and wider financial acceptance. XRP’s price responded positively, indicating potential investor confidence and heightened institutional interest.

Ripple’s decision to apply for a US national banking charter marks a significant shift in the firm’s regulatory strategy. The move is primarily aimed at enhancing the credibility and security of RLUSD, Ripple’s newly launched stablecoin, and grants the digital asset a broader acceptance. Brad Garlinghouse, Ripple’s CEO, highlighted the potential federal benefits, including holding Ripple’s reserves directly with the Federal Reserve, which could improve settlement speed and transparency.

Ripple’s decision to pursue this application underlines its commitment to aligning with future US regulation for stablecoins. By applying for a Federal Reserve Master Account, Ripple intends to ensure RLUSD’s reserves are kept with the federal financial system, thus bypassing traditional banking structures. This strategic shift could enhance both the credibility and efficiency of Ripple’s operations.

The announcement led to a notable rise in the value of XRP, with its price increasing by 3%–5% immediately after the news broke. Market analysts suggest this indicates investor optimism about Ripple’s potential to play a more integrated role in global finance. Historically, similar movements by firms like Anchorage Digital and Circle have signaled increased institutional acceptance of blockchain-based assets.

Ripple’s pursuit of a banking charter reflects broader trends in the crypto industry, with more companies seeking closer regulatory ties. If successful, this move could lead to increased adoption of RLUSD within mainstream financial systems. Whether Ripple’s strategy will lead to sustained growth or set a precedent for other crypto companies remains to be seen. The proposal aligns with recent regulations, like the GENIUS Act, which aims to impose transparency and reserve standards on stablecoins. Federal Reserve engagement by Ripple could encourage institutions to consider RLUSD and XRP as viable financial tools.