Brad Garlinghouse, the CEO of Ripple Labs, shared big news recently. Ripple has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to create a new banking system called Ripple National Trust Bank. The OCC is a government agency that supervises national banks to ensure they operate securely and reliably. You can learn more about the OCC here.
This approval is a significant milestone for Ripple and its stablecoin, RLUSD, which ensures strong compliance with both federal and state regulations. Other companies like Circle, BitGo, Fidelity, and Paxos also made progress. Some of them converted their existing state-chartered trust companies into the federal system.
Eleanor Terrett, a journalist, gave more details about these approvals. She explained that Ripple National Trust Bank and other institutions like First National Digital Currency received conditional approval for newly created national banks, also called ‘de novo’ banks. You can read her post about this update here.
The approval process involved careful and strict reviews, as Comptroller Jonathan Gould pointed out. Every application was checked thoroughly to make sure they met specific conditions. Gould said this effort is modernizing the banking system by including more diverse and innovative financial options.
Ripple’s leader, Brad Garlinghouse, criticized traditional banking systems during the announcement. He mentioned that some banks have unfairly tried to block or undermine crypto companies like Ripple. Garlinghouse stated, “Crypto is now being held to the same standards as traditional banks under the OCC’s supervision. We’re committed to compliance, trust, and innovation that benefits consumers.” He added that this move is a “massive step forward” for Ripple’s ecosystem and its stablecoin, RLUSD.
The news highlights the growing acceptance of cryptocurrency and blockchain technology in mainstream banking. Garlinghouse emphasized how the crypto industry is not backing down and is working hard to meet all regulations.
This conditional approval is indeed a crucial stride in Ripple’s journey to bring innovative payment solutions worldwide. To learn more about Brad Garlinghouse and his work, visit here.