Moving Towards Capitalization

Ripple has recently applied for a banking license with the U.S. Office of the Comptroller of the Currency (OCC). This move aligns Ripple’s strategy to expand into mainstream finance, where it is known predominantly for its XRP cryptocurrency and ledger technology.

Although most recognized for these technologies, Ripple also launched RLUSD, a stablecoin, last year. If approved, this banking license would subject the company to federal and state oversight, with regulation of RLUSD by the New York Department of Financial Services.

Circle’s Bid for Charter

Following closely is Circle, which also submitted a request for a bank charter. If approved, this would allow Circle to establish a new entity called the First National Digital Currency Bank, N.A., potentially offering bespoke services tailored to institutional clients in the future.

Both companies are leveraging recent developments, such as the GENIUS Act’s passage, which provides regulatory guidelines for U.S. stablecoins and has sparked interest among major retailers like Walmart, Amazon, and tech giants like Meta, who might launch their own brand-specific stablecoins.

Traditional Services in the Crypto Space

Crypto companies are also venturing into traditional financial services. For instance, Kraken announced plans to launch a peer-to-peer (P2P) payments app that could compete with well-established players like PayPal and Venmo.

Other new platforms aim to connect checking accounts directly with crypto accounts. Ripple has partnered with OpenPayd to develop cross-border payment solutions in Europe, allowing the exchange of certain regional fiat currencies into RLUSD and vice versa. Circle also plans to introduce a global payments network to facilitate transfers between USDC and fiat currencies.

These moves indicate the increasing integration of cryptocurrency services with traditional financial systems as regulatory clarity improves in the U.S.