Conditional OCC Approval for Ripple National Trust Bank
Ripple CEO Brad Garlinghouse announced today that the company has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to charter Ripple National Trust Bank. This marks a significant milestone for the company and the broader crypto industry.
What the OCC Approval Means
The OCC, a national agency responsible for ensuring a safe and sound national banking system, has granted Ripple the conditional approval to establish its national trust bank. This move aligns Ripple with other major players such as Circle, which have secured similar approvals, and follows a trend where companies like BitGo, Fidelity, and Paxos have transitioned their state‑chartered trust companies to the federal system.
Rigorous Review Process
According to journalist Eleanor Terrett, Comptroller Jonathan Gould noted that each application underwent a rigorous review process to ensure that all companies met additional conditions before becoming fully operational. Gould emphasized that these new entrants help modernize and diversify the banking system, broadening access to innovative financial products.
Garlinghouse’s Reaction
Garlinghouse used this opportunity to criticize the traditional banking system and those opposing more innovative companies like Ripple. He stated,
“To the banking lobbyists – your anti‑competitive tactics are transparent. You’ve complained that crypto isn’t playing by the same rules, but here’s the crypto industry – directly under the OCC’s supervision and standards – prioritizing compliance, trust, and innovation to the benefit of consumers. What are you so afraid of?”
He described the development as “huge news” for Ripple and its ecosystem, emphasizing that it is a “massive step forward” for the native stablecoin (RLUSD). This approval sets the highest standard for stablecoin compliance with both federal (OCC) and state (NYDFS) oversight.
Broader Impact
The OCC’s conditional approval allows Ripple to operate under federal supervision, reinforcing compliance and trust in its operations. It also highlights the growing acceptance and integration of cryptocurrency companies within the traditional financial system, paving the way for broader adoption of digital assets.
