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Investing.com -- Circle Internet Group Inc . (NYSE:CRCL) stock dropped 8% following news that competitor Ripple has applied for a federal banking license with the Office of the Comptroller of the Currency (OCC) for its stablecoin RLUSD.
Ripple’s move toward federal oversight appears to have pressured Circle shares as the competitive landscape for regulated stablecoin issuers intensifies. In addition to the OCC application, Ripple’s subsidiary also sought a Federal Reserve master account to hold reserves directly with the central bank.
The development comes as Circle itself applied for a national banking license with the OCC on Monday. Circle’s license, if approved, would enable the company to act as a custodian of its own reserves and hold cryptocurrency assets for institutional clients.
Ripple CEO Brad Garlinghouse highlighted the company’s regulatory strategy on social media platform X: "True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market."
Garlinghouse further noted that Ripple’s approach to regulation aims to "future proof trust in RLUSD" in what he described as a $250 billion-plus market where RLUSD "stands out for putting regulation first."
The stablecoin market has become increasingly competitive as issuers seek regulatory clarity and institutional adoption continues to grow.
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