Crypto Firms Accelerate Moves to Join Federal Reserve System and Attain Bank Status
July 3, 2025 | 7:42 AM UTC — As the regulatory landscape for cryptocurrencies becomes clearer, several crypto companies are intensifying efforts to integrate more deeply into the U.S. financial system by obtaining bank charters and access to the Federal Reserve’s payment infrastructure. Leading this push are notable firms such as Ripple and the newly launched digital-first bank Erebor.
Ripple’s Strategic Steps Toward Federal Oversight
Ripple has recently filed an application with the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. This move is aimed primarily at bringing its RLUSD stablecoin under federal oversight, which currently falls under New York state regulation. According to Jack McDonald, Ripple’s Senior Vice President of stablecoins, securing the charter would enable RLUSD to benefit from dual supervision that enhances transparency and regulatory compliance.
The timing of Ripple’s application aligns with ongoing congressional discussions around the Genius Act—a proposed legislative framework that could mandate stablecoin issuers to obtain federal charters. In preparation for potential regulatory changes, Ripple’s initiative appears to be a forward-looking strategy designed to place the company favorably in the evolving regulatory environment.
Currently, Anchorage Digital remains one of the few crypto-native companies holding a national bank charter, while Circle, issuer of the popular stablecoin USDC, has also submitted an application for such a charter.
Pursuing the ‘Diamond Tier’ of Payment Infrastructure: Federal Reserve Master Account
Beyond the bank charter, Ripple subsidiary Standard Custody & Trust has filed for a Federal Reserve master account, a selective and highly influential form of access to U.S. payment systems. This status allows institutions to settle payments directly with the Federal Reserve in real-time, significantly boosting operational efficiency and settlement speed.
Banking experts have described obtaining a Fed master account as the “Diamond tier” of U.S. financial access, surpassing even the significance of national bank charters. Despite its advantages, the Federal Reserve has so far remained cautious, declining similar applications from crypto firms such as Custodia Bank, which is currently contesting the denial in court.
Erebor: A Peter Thiel-Backed Digital Bank Racing for a National Charter
Ripple is not alone in this endeavor. Erebor, a startup bank backed by Peter Thiel’s Founders Fund and Joe Lonsdale—co-founder of venture capital firm 8VC—has also applied for a national bank charter. Led by Palmer Luckey, founder of Oculus, Erebor markets itself as a next-generation financial institution tailored to startups operating in crypto, artificial intelligence, defense, and manufacturing sectors. These industries have faced banking challenges following the collapse of Silicon Valley Bank.
Erebor plans to facilitate both traditional banking services and stablecoin infrastructure support, aiming to become the “most regulated entity” within the crypto and digital finance ecosystem. Its name, inspired by Tolkien’s “Lonely Mountain,” symbolizes the company’s ambition to rebuild and strengthen a critical segment of the U.S. innovation economy.
The Broader Context: Crypto Integration into the U.S. Financial System
These efforts by Ripple, Erebor, and others illustrate a broader trend among crypto firms that seek to align with governmental frameworks rather than operate on the fringes. With stablecoin legislation moving closer to realization in Washington, the race to secure bank licenses and access to the Federal Reserve’s payment systems is intensifying.
If successful, such moves may afford these companies not only enhanced regulatory legitimacy but also competitive advantages in offering faster, more secure, and federally compliant financial services to a broad customer base.
About the Author:
Giuseppe Ciccomascolo is a seasoned investigative journalist and crypto analyst with experience across financial sectors in Italy and the UK. Since 2017, he has specialized in cryptocurrency coverage, producing in-depth reports and documentaries on Bitcoin and emerging digital assets.
For more news and analysis on cryptocurrency, visit CCN.com.