Ripple has received final approval from the Office of the Comptroller of the Currency to launch the Ripple National Trust Bank. The new institution will operate under federal supervision, joining other firms like Circle, BitGo, and Fidelity Digital Assets that hold similar charters.
The primary function of the bank is to manage reserves for the Ripple USD stablecoin, including dollar deposits, cash equivalents, and US government securities. The bank will act as a trustee for these assets and provide fiduciary digital asset custody services to enterprise clients.
The stablecoin RLUSD has seen significant growth, with its supply reaching approximately $2.57 billion, an 86% increase since January. Currently, about 61% of the supply circulates on the Ethereum network, while 39% is held on the XRP Ledger.
Despite the charter, the role of the XRP token remains limited. Most RLUSD transactions on Ethereum do not contribute to XRP burns, and fees on the XRP Ledger are insufficient to significantly impact supply. The future utility of the bank for XRP holders depends on whether the custody arm decides to manage institutional XRP holdings.
