Ripple (CRYPTO: XRP) CEO Brad Garlinghouse announced on Monday that the Office of the Comptroller of the Currency has issued final approval for a federally supervised trust bank.
Garlinghouse Hails Ongoing ‘Revolution’
In an X post, Garlinghouse said the approval gives Ripple National Trust Bank a regulated platform to support RLUSD (CRYPTO: RLUSD), the company’s stablecoin, and to provide digital-asset custody services to enterprises.
“We’ve always said crypto and banks work better together — this is what that looks like. Real innovation, real accountability, federal oversight,” he added. “The revolution isn’t happening outside the system. It’s happening from within it.”
RLUSD Reserves Under Federal Supervision
Ripple applied for a national trust bank charter and a Federal Reserve master account in July of last year and received conditional approval in December.
Approved activities cover managing the segregated reserves backing RLUSD stablecoin, acting as collateral trustee of the reserves for RLUSD holders and offering fiduciary digital asset custody services.
With a market capitalization of $2.58 billion, RLUSD is used across Ripple’s payments network and serves as collateral within Ripple Prime, the company’s institutional brokerage arm.
The Big Institutional Push
The approval arrives amid Ripple’s growing push into institutional markets, as investment management firm Aviva Investors tokenized a share class of its nearly $29 billion Sterling Liquidity Fund on XRP Ledger.
Notably, leading cryptocurrency analyst Ali Martinez warned on Sunday that the XRP token could face additional selling pressure if large holders continue reducing exposure.
Price Action: As of this writing, XRP is up 1.8% in the last 24 hours to $1.30, according to Benzinga Pro.
Photo Courtesy: Michaela Jilkova on Shutterstock.com
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