Ripple Wins Conditional OCC Approval for U.S. Trust Bank

• OCC grants Ripple preliminary approval to charter a national trust bank.
• Stuart Alderoty says the decision reflects Ripple’s compliance-first strategy.
• Brad Garlinghouse points to federal oversight amid banking industry pushback.

Ripple has received conditional approval to form a national trust bank in the United States. Reacting to the news, Chief Legal Officer Stuart Alderoty said the move reflects years of regulatory preparation.

Alderoty: Compliance at the Core

Alderoty said on X that the conditional approval shows how the company has approached digital assets since its launch. He said Ripple has focused on operating within legal frameworks while building products tied to real financial use cases.

He stated the approval follows recent changes to the U.S. regulatory ecosystem for stablecoins, particularly the GENIUS ACT. Alderoty added that the decision helps position Ripple’s stablecoin business for long-term operation under clearer federal rules. 

Details of the OCC Approval

According to the OCC letter dated Dec. 12, the agency has granted preliminary conditional approval to Ripple’s application to charter Ripple National Trust Bank. The bank would engage in trust company operations, including fiduciary activities.

The OCC said the approval does not authorize the bank to begin operations. Ripple must meet all pre-opening requirements before receiving final approval under federal law. The regulator also said it can modify, suspend, or rescind the approval if interim developments warrant such action.

Garlinghouse Responds to Banking Opposition

Ripple Chief Executive Officer Brad Garlinghouse said the approval places Ripple under direct federal banking supervision. He said this addresses claims that crypto companies operate outside established rules.

Garlinghouse pointed to oversight by both the OCC and the New York Department of Financial Services. He said Ripple’s application shows that crypto firms can meet the same regulatory standards applied to traditional financial institutions.

Stablecoin and Banking Context

If approved, Ripple National Trust Bank would manage reserves for Ripple USD, or RLUSD, the company’s dollar-backed stablecoin. The structure would place RLUSD under federal oversight, alongside state-level supervision in New York.

The decision follows recent OCC guidance confirming that national banks may engage in certain low-risk crypto transactions. The guidance allows banks to act as intermediaries in crypto trades without holding the assets on their balance sheets, reducing exposure to market risk.

Related: Riskless Crypto Trades Now OK for Banks: What This Means for Ripple’s Banking Charter