The two largest stabilizers in the area of encrypted currency, Ripple (release of RLUSD) and Circle (responsible for USDC), have applied to become the United States National Trust Bank, a rare initiative that, if approved, would subject them to federal regulation and bring them closer to the heart of the United States financial system.
These bank charters will place the two companies under the authority of the Monetary Supervisory Authority (OCC) and will be subject to the same capital, liquidity and risk management standards as traditional banks. According to Chris Colson, a payer from the Federal Reserve Bank of Atlanta, this is significant for encrypted currencies, as it shows that a stable currency may actually enter mainstream financial markets.
“Trust licences can enhance confidence in the security and oversight of USDC and RLUSD”, he mentioned in LinkedIn's post of 3 July that “this may pave the way for broader institutions and cross-border adoption”.
Direct access is a major achievement for the encryption industry, where regulatory clarity remains vague and difficult to obtain. The National Bank charter not only provides prestige but also direct access to the United States financial system. While the National Trust Bank does not accept deposits or provide loans, thereby circumventing some of the most stringent requirements and capital requirements of the Fed, obtaining a charter would allow these companies to hold their own stable currency reserves as custodians of federal supervision and possibly access the Fed ' s real-time payment system.
Colson noted that approval also implies a great competition for existing banks. “Ripple and Circle's actions blur the line between financial technology and traditional banking”, he said, “it introduces a new kind of competitor — a competitor who provides a programmable, block-chain-based currency but operates under similar rules”.
As the Genius Act moves forward in Washington and the OCC attitude under the leadership of Rodney Hood, a supervisor appointed by Trump, is moving forward with encryption companies. Hood took action at the beginning of his tenure to reaffirm that a series of encrypted money activities were permitted in the United States federal banking system.
For CoinFund Managing Director Chris Perkins, bank licences will be the basis for compliance under the Genius Act. “It is absolutely fascinating to see how Ripple gets a licence. And I think they're a powerful force, and Perkins tells DL News, "They're putting together all the elements to build a very successful and scalable RLUSD."
The risk of evolution or extinction has never been so high. Circle had recently been listed, with over $60 billion in reserves to support USDC, and was now relying on traditional custodians such as Melon Bank in New York to manage its assets. The National Trust Charter, on the other hand, will enable Circle to monitor these reserves directly and streamline hosting services for its institutional clients. At the same time, Ripple has applied for access to the Fed’s account, an initiative that will enable it to settle payments directly on the Fed’s track – a rare privilege even in FTS.