Circle and Ripple Pursue U.S. Bank Charters to Cement Stablecoin Legitimacy

Stablecoin Giants Eye Federal Oversight as Regulatory Climate Shifts

Circle and Ripple have filed applications for U.S. national banking licenses in a strategic push to tighten their grip on the regulated stablecoin market amid a friendlier regulatory posture under the Trump administration. The moves follow Circle’s high-profile IPO earlier this month and signal a notable shift as major crypto firms increasingly seek closer alignment with traditional banking rules and infrastructure.

Circle Internet Group, issuer of USDC and now trading under the ticker CRCL, confirmed it has applied for a national bank charter through the U.S. Office of the Comptroller of the Currency (OCC). The license, if granted, would allow the company to act as a custodian for its own USDC reserves and hold crypto on behalf of institutional clients. 

However, it does not permit the firm to accept cash deposits or issue loans like a traditional bank. According to the company’s filing, the newly licensed entity would be named First National Digital Currency Bank, N.A. The move comes on the heels of Circle's IPO on June 5, which saw its shares soar 167% on the first trading day after pricing at $31—well above the indicated range. The offering was 25 times oversubscribed. Circle’s stock has since closed at $181.29, pushing its market capitalization beyond $40 billion. USDC itself currently holds a market cap of $61.5 billion, positioning it as a major player in the stablecoin space.

Ripple has followed suit with its own OCC application, aiming to place its recently launched stablecoin RLUSD under federal supervision. Ripple CEO Brad Garlinghouse announced the application publicly, framing it as part of the firm’s long-standing commitment to compliance. If approved, Ripple would operate under both federal regulation and oversight from the New York Department of Financial Services (NYDFS), creating what Garlinghouse called a “unique benchmark” in stablecoin transparency. Ripple’s custody subsidiary, Standard Custody & Trust Company, has also submitted an application for a Federal Reserve master account, which would allow the firm to hold RLUSD reserves directly with the U.S. central bank.

These applications land as U.S. regulators, including the OCC, begin easing restrictions on crypto-related services for national banks. Earlier policy shifts have opened the door for federally chartered institutions to buy and sell digital assets on behalf of clients, creating new incentives for crypto-native firms to enter the regulated banking sphere. 

Analysts at Bernstein recently projected that Circle's USDC could emerge as the dominant regulated stablecoin under the GENIUS Act, arguing that the firm’s positioning grants it a “regulatory headstart” over peers. As Circle and Ripple await decisions on their applications, the outcome may serve as a bellwether for how integrated crypto-financial services will become within the U.S. banking system.

This article has been refined and enhanced by ChatGPT.