Ripple’s New Federal Bank Charter Does Not Alter Stablecoin Issuance

The Office of the Comptroller of the Currency granted final approval for the Ripple National Trust Bank on October 26, following a conditional charter issued in late 2025. This federal entity is designed to provide fiduciary digital-asset custody and serve as a collateral trustee for the stablecoin’s backing assets. However, the regulatory structure keeps the actual issuance and redemption obligations within the New York-regulated Standard Custody & Trust Company, maintaining a clear separation between the coin’s legal liability and the new bank’s custodial services.

Ripple’s transparency data from October 22 shows $2.38 billion in circulating RLUSD backed by $2.53 billion in reserves. Despite these figures, holders should note that the new bank charter does not turn RLUSD into an FDIC-insured deposit. The company’s terms explicitly state that the token is not legal tender and direct redemption remains restricted to eligible customers under separate agreements, rather than being an automatic feature of holding the asset. As BNY expands its own institutional custody for XRP and RLUSD, the operational landscape remains a network of distinct legal entities—each with specific, limited roles—rather than a single unified banking platform for retail users.