Ripple clears final OCC hurdle for National Trust Bank, overseeing RLUSD reserves

This institution is structured to manage the reserves backing RLUSD and function as a collateral trustee for the token's holders.

Ripple CEO Brad Garlinghouse announced this via X, stating the OCC granted final approval for Ripple National Trust Bank. This provides the company with a federally supervised platform for its RLUSD stablecoin and for enterprise digital asset custody.

Garlinghouse characterized this as "big news" ahead of Ripple's Swell event, asserting it demonstrates how crypto firms and banks can collaborate effectively. He wrote that "The revolution isn't happening outside the system. It's happening from within it," noting the bank offers "real innovation, real accountability, federal oversight."

Stuart Alderoty emphasized a prior strategic choice by Ripple to "build within the regulatory perimeter, not around it." He added that rigorous oversight and clear rules foster trust, which is necessary for new financial infrastructure to scale.

The new bank's function, as noted by Jack McDonald, SPV for Stablecoins at Ripple, is to manage RLUSD reserves and act as a collateral trustee. This design integrates federally supervised custody into existing institutional infrastructure.

The Blockchain Association congratulated the company and its CEO, viewing the approval as a milestone for integrating digital asset innovation into the US banking system and advancing American leadership.

Ripple initially received conditional OCC approval for the charter in December 2025, according to CryptoPotato reports. During that period, Circle also received similar approval, while BitGo, Fidelity, and Paxos transitioned their state-chartered trusts to the federal system.

Comptroller Jonathan Gould mentioned that all applications underwent a rigorous review, requiring applicants to meet additional conditions before full operation. Garlinghouse used the announcement to challenge banking lobbyists, asking, "What are you so afraid of?" He also claimed the approval significantly advances RLUSD, which he stated sets the highest compliance standard under both OCC and New York Department of Financial Services oversight.

This regulatory development aligns with a broader industry trend where established financial institutions are integrating digital asset infrastructure under recognized regulatory frameworks.

Furthermore, earlier this month, Cross River Bank in New Jersey agreed to incorporate RLUSD into its Core Operating System. This allows businesses on the platform to move funds between US dollars and RLUSD using a single API connection, facilitating ACH transfers and wires, with XRP Ledger transactions settling in three to five seconds, though availability is currently limited to certain states. Garlinghouse's post did not specify an operational start date for the bank.

Why it matters

This approval signals a significant move toward integrating digital asset infrastructure within established US banking frameworks. For DeFi and L2 participants, this development impacts the perceived regulatory risk and institutional adoption pathways for stablecoins like RLUSD. Readers should watch how this federal oversight affects the broader landscape of token custody and reserve management.