Moreover, such a designation would provide a crucial endorsement of legitimacy after years of operating in a regulatory gray area. The Office of the Comptroller of the Currency (OCC), a key banking regulator, has confirmed receipt of Ripple’s charter application, which will undergo rigorous scrutiny before any approval is granted.
Ripple launched its stablecoin, RLUSD, in October of last year. Although it is considerably smaller than dominant players like Tether (USDT) and Circle (USDC), RLUSD has established itself as one of the largest stablecoins, boasting a market value of approximately $470 million.
This strategic move occurs at a pivotal time for Ripple, as the company appears to be approaching a resolution in its prolonged legal battle with the US Securities and Exchange Commission (SEC).
Interestingly, this shift could allow the blockchain payment company to refocus on its core mission: building the “Internet of Value,” as disclosed by Garlinghouse, a vision aimed at transforming global payment systems.
The outcome of Ripple’s legal battle could also pave the way for additional financial products linked to its associated cryptocurrency, XRP. With major asset managers expressing interest in exchange-traded funds (ETFs) that include XRP, the stakes are high for Ripple’s future in the financial landscape.
Circle’s CEO, Jeremy Allaire, emphasized the company’s commitment to trust and compliance, stating that becoming a publicly traded company is a critical step in this journey.
As of this writing, XRP trades at $2.23, jumping little over 3% following Ripple’s announcement on Wednesday. This recovery puts the cryptocurrency 34% below its record high of $3,40.
Featured image from DALL-E, chart from TradingView.com
