- Circle and Ripple have both applied for national trust bank charters with the U.S. Office of the Comptroller of the Currency (OCC).
- Both firms aim to manage stablecoin reserves and offer fiduciary services without seeking federal deposit insurance.
- About 90% of each application is marked confidential, offering limited information for public review.
- Circle intends to handle USDC reserves and digital asset custody through its new bank, led by a team with strong financial regulatory backgrounds.
- Ripple’s new bank will support the RLUSD stablecoin and related payment services, drawing on board members with significant fintech and banking experience.
Circle and Ripple have each submitted applications to the U.S. Office of the Comptroller of the Currency (OCC) for national trust bank charters. These efforts are designed to support their digital stablecoin businesses and expand their financial services.
Circle issues USDC, currently the second-largest stablecoin with over $60 billion in circulation. Ripple recently launched RLUSD, its own stablecoin. Both companies revealed in their filings that they seek charters for national banks that will not provide traditional deposit insurance. Instead, they plan to manage stablecoin reserves and offer fiduciary services. Both have also requested to open Federal Reserve accounts.
The OCC requires a one-month period for public comment on bank charter applications. Circle and Ripple designated about 90% of their filings as confidential, making public details scarce. Still, their submissions include team rosters and general information about their business models.
Circle plans to form the First National Digital Currency Bank (FNDCB). Heather Tarbert, who has served as both Commodity Futures Trading Commission (CFTC) Chair and Circle President, is named as the board chair. The board also includes a former OCC Chief Counsel and a proposed Chief Operating Officer with experience from Anchorage Digital—a company noted as the first digital asset bank to get a similar trust charter. “FNDCB will complement and enhance Circle’s business in multiple ways. Upon opening, FNDCB will manage USDC reserves and provide related fiduciary services, including digital asset custody,” Circle stated in its application.
Ripple seeks to create Ripple National Trust Bank as a new subsidiary rather than convert its main business. The new entity will be led by Jack McDonald, CEO of Standard Custody and Trust, which is already a Ripple subsidiary licensed at the state level. Board members include Ripple Chief Legal Officer Stuart Alderoty, who has held senior legal roles at HSBC North America and American Express, and David Puth, who formerly led the Center Consortium that governed USDC. Tim Keaney, previously vice chair at BNY Mellon, is also named as a director, although his current status is outdated in the application. Ripple stated: “Once chartered, the Trust Bank will conduct activities that complement Ripple’s stablecoin and other payments businesses, including management of stablecoin reserves and related fiduciary services.”
Both Circle and Ripple note that their detailed business plans are confidential. The companies have marked most of their applications as confidential, limiting the opportunity for meaningful public input during the review period required by the Freedom of Information Act.
For more information, visit the official websites of Circle and Ripple.
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