Ripple Labs is making headlines as it formally applies for a U.S. banking license in a bold move to solidify its position in the regulated financial sector. CEO Brad Garlinghouse confirmed on social media that the company has submitted its application to the Office of the Comptroller of the Currency (OCC), aiming to secure a national bank charter. This would place Ripple under both federal and state supervision, with the New York Department of Financial Services already overseeing its RLUSD stablecoin.

The application follows a similar step by Circle, the issuer behind USDC, the second-largest stablecoin. Circle recently sought to establish a national trust bank, aligning with the newly passed GENIUS Act—a bill designed to regulate dollar-pegged stablecoins. Both companies are moving quickly to comply with the emerging U.S. regulatory framework.

If approved, Ripple would join Anchorage Digital as one of the only crypto firms holding a national bank charter. In addition, Ripple has applied for a coveted Federal Reserve Master Account. This would allow the company to hold RLUSD reserves directly with the U.S. central bank, enhancing security and boosting trust in its stablecoin.

The banking ambitions come after Ripple's acquisition of crypto custody firm Standard Custody in early 2024, a strategic move to support its regulatory roadmap. Garlinghouse emphasized that the industry is seeing a shift, with traditional banks now warming up to crypto after years of resistance.

Market reaction was immediate. XRP, Ripple's native token, surged 3.2% to $2.24 following the announcement, peaking at $2.27 before slightly retreating. Investors appear optimistic that Ripple’s regulatory leap could set a new standard for crypto legitimacy in the U.S. financial system.