Ripple wins final OCC approval for national trust bank to hold RLUSD reserves, custody digital assets

Ripple has won final approval from the OCC to run federally supervised reserves and custody for its $2.5 billion RLUSD stablecoin, The Block reported on October 26. The new Ripple National Trust Bank cannot take deposits or lend, and RLUSD issuance stays under New York regulators.

Ripple National Trust Bank receives a limited banking mandate

The approval completes a regulatory process that began when Ripple submitted its application for a U.S. banking license in July 2025. The OCC granted conditional approval on December 12 that year, with final authorization arriving less than a year later.

“We’ve always said crypto and banks work better together — this is what that looks like,” Garlinghouse, Ripple’s chief executive, said on X.

“Real innovation, real accountability, federal oversight,” he added.

Despite its name, Ripple National Trust Bank will operate under a more limited mandate than a full-service commercial bank. National trust bank charters do not permit deposit-taking or lending. Their scope centres on trust services and related fiduciary activities.

That distinction is central to understanding the approval. Ripple has received authorization for a defined set of reserve management and custody functions, rather than permission to offer the full range of conventional banking services.

The company’s announcement identifies three principal responsibilities: managing the segregated reserves backing RLUSD, serving as collateral trustee for those reserves on behalf of stablecoin holders, and providing fiduciary custody of digital assets.

RLUSD issuance remains under New York oversight

Ripple National Trust Bank will take responsibility for the authorized reserve and custody activities, but it will not become the issuer of RLUSD.

Issuance will remain with Standard Custody & Trust Company, Ripple’s limited purpose trust company regulated by the New York State Department of Financial Services. The structure preserves that state-regulated issuing entity while placing designated supporting activities under the OCC.

The arrangement therefore adds federal supervision to the stablecoin’s existing state-level oversight. It separates the entity responsible for creating RLUSD from the federally chartered institution authorized to oversee its reserves and perform related fiduciary functions.

For Ripple National Trust Bank, the collateral trustee role specifically concerns the reserves held for RLUSD holders. Alongside reserve management, that responsibility forms a core part of the institution’s approved mandate.

The distinction between issuance and reserve oversight also explains why the approval does not amount to moving every aspect of RLUSD into a single federal entity. Different responsibilities remain assigned to the two regulated companies.

Stablecoin growth gives the approval commercial significance

RLUSD launched in December 2024 and has reached a market capitalization of $2.5 billion, according to Ripple. The company said the stablecoin is used across its payment infrastructure and as collateral within Ripple Prime.

Those existing uses provide the commercial backdrop for Ripple National Trust Bank. The new institution is intended to support a stablecoin already operating within Ripple’s business, alongside offering digital asset custody services to enterprise customers.

The approval brings reserve administration and institutional custody together within a federally supervised platform. Both functions sit within the trust bank’s specified responsibilities, while the stablecoin’s issuance arrangements remain in place.

Ripple National Trust Bank consequently represents an expansion of the company’s regulated infrastructure. Its significance lies in the oversight and fiduciary framework around those activities, rather than the introduction of deposit accounts or lending products.

Crypto trust charters draw scrutiny from lawmakers

The decision places Ripple National Trust Bank among a growing group of cryptocurrency businesses obtaining OCC authorization.

Circle received final approval in July 2026, bringing USDC reserves under federal supervision. BitGo received approval in December 2025, while Coinbase, Crypto.com and World Liberty Financial have secured conditional approvals this year, according to the report.

The approvals have drawn criticism from lawmakers including Senator Elizabeth Warren, who accused the OCC’s approach of violating the National Bank Act and creating risks for the financial system.

The Digital Chamber rejected those accusations. The industry group argued that critics were mischaracterizing the charters as an improper expansion of banking privileges, emphasizing their restriction to trust and related fiduciary activities. It also noted that the companies had voluntarily submitted to federal supervision.

That dispute forms the wider backdrop to Ripple National Trust Bank: the company presents federal oversight as a foundation for digital asset services, while critics continue to challenge the regulatory approach enabling such institutions.