by Vincent Muthee
The U.S Office of the Comptroller of the Currency (OCC) has granted Ripple a conditional greenlight to form a national trust bank. This move pushes the firm past a significant regulatory milestone as it deepens its foothold in the U.S.
OCC’s decision arrives amid renewed debate over crypto oversight in the United States. Large banks have raised concerns about digital asset firms entering regulated banking spaces but Ripple argues that federal supervision addresses those concerns directly. The company now awaits final approval before starting operations.
OCC Approval Signals Regulatory Milestone
The OCC issued a letter dated December 12 granting Ripple preliminary conditional approval to charter Ripple National Trust Bank. The proposed entity would operate as a national trust bank, focusing on trust company services and fiduciary activities rather than traditional retail banking.
However, the regulator made clear that the approval does not allow the bank to begin operations. Ripple must meet all pre-opening conditions under federal law before kickstarting operations. These include governance, capital, and compliance requirements. The OCC also retained the authority to change or revoke the approval if circumstances change.
Chief Executive Officer Brad Garlinghouse said the approval places Ripple under direct federal banking supervision. He argued that this undermines claims that crypto companies avoid oversight. Garlinghouse highlighted supervision by both the OCC and the New York Department of Financial Services.
HUGE news! @Ripple just received conditional approval from the @USOCC to charter Ripple National Trust Bank. This is a massive step forward – first for $RLUSD, setting the highest standard for stablecoin compliance with both federal (OCC) & state (NYDFS) oversight.
To the…
— Brad Garlinghouse (@bgarlinghouse) December 12, 2025
Ripple’s Chief Legal Officer, Stuart Alderoty, also said the decision reflects the company’s long-term compliance-first approach. He said Ripple has worked within legal frameworks since its early days. Alderoty added that the approval validates that strategy at a time when regulators demand higher standards. He linked the decision to broader shifts in U.S. crypto regulation.
“Since its inception, Ripple has led with trust, compliance, and real utility – and we’ll continue setting the standard for how institutions engage with digital assets. We are among the first to receive conditional approval following the enactment of GENIUS – future-proofing Ripple’s stablecoin business for the long term,” Alderoty wrote.
The OCC process requires extensive disclosures and controls and as a result only few digital asset companies attempt it. However, Ripple’s progress suggests that federal banking pathways remain open for firms willing to comply.
Ripple Positions RLUSD Within Federal Banking Oversight
If the OCC grants final approval, Ripple National Trust Bank would manage reserves for the Ripple USD (RLUSD). RLUSD serves as the crypto firm’s dollar-backed stablecoin. The bank structure would place those reserves under federal oversight allowing New York state regulators to continue to supervise parts of the operation.
Ripple expects the trust bank structure to support stablecoin operations under consistent standards. As well, the framework may act as a bridge between traditional finance and blockchain-based payments.
The company has long marketed its products to banks and payment firms and the federally supervised trust bank would strengthen that pitch. It also places Ripple inside the same regulatory perimeter as established financial institutions. However, the final OCC approval will determine whether Ripple can turn conditional permission into an operating bank.
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