Ripple Applies For A National U.S. Banking License

Big news in crypto: Ripple has applied for a U.S. banking license.

Ripple’s dollar-backed stablecoin, RLUSD, is currently regulated under New York state oversight. I Photo: Ripple Facebook

The blockchain company, led by CEO Brad Garlinghouse, filed its application last week, according to The Wall Street Journal, Andrew Nusca also reported for Fortune Tech.

A national banking license would allow the company to perform core banking functions—accepting deposits, issuing loans, processing transactions, and offering debit and credit cards—while also giving it access to the Federal Reserve System.

More broadly, it’s a signal of stability for a crypto sector that has faced more than a decade of volatility and scrutiny. Ripple’s dollar-backed stablecoin, RLUSD, is currently regulated under New York state oversight.

A national trust bank charter would shift oversight to the U.S. Office of the Comptroller of the Currency. Stablecoins are pegged to a government-issued currency, such as the U.S. dollar, and are backed by reserves held in cash, Treasurys, or other secure assets.