If Ripple obtains the OCC charter, will RLUSD replace or strengthen XRP?

Ripple is applying for a national trust bank charter issued by the Office of the Comptroller of the Currency (OCC) in the United States. If approved, its USD stablecoin Ripple USD (RLUSD) will officially enter the regulatory framework of the U.S. banking industry. This move has sparked market discussions: will RLUSD marginalize Ripple (XRP) in the payment and settlement space, or will it instead inject new liquidity and application scenarios for it?

Ripple National Trust Bank Program and the Positioning of RLUSD

According to OCC public documents, Ripple plans to establish the "Ripple National Trust Bank" headquartered in New York, fully owned by Ripple Labs, focusing on digital asset business, including the issuance and custody of RLUSD.

RLUSD officially launched in December 2024 and integrated into Ripple Payments in April 2025. It currently operates on both XRPL and Ethereum, with a market capitalization of nearly 730 million USD, ranking among the top USD stablecoins.

Regulatory Background: The "GENIUS Act" and Global Stablecoin Regulations

The "GENIUS Act" signed in July this year clearly regulates the issuance conditions of payment stablecoins, including reserve requirements, redemption mechanisms, and the prohibition of paying interest to coin holders. The act opens a legal pathway for "federally qualified" issuers, such as OCC-chartered national trust banks.

Internationally, the EU MiCA, Hong Kong's statutory stablecoin framework, and the Bank of England's systemic stablecoin proposal will benefit issuers with bank-level compliance capabilities. If Ripple obtains a license, it will be easier to connect with large financial institutions worldwide.

The Complementarity and Competition Between RLUSD and XRP

In the XRPL network, each transaction requires a small amount of XRP as a transaction fee, and each account must maintain a minimum reserve (which will be reduced to 1 XRP by the end of 2024).

If the usage of RLUSD on XRPL significantly increases, some transactions that originally relied on XRP as a cross-border bridge asset may settle directly in RLUSD, especially in channels with ample USD liquidity, which may reduce the direct demand for XRP at the payment layer.

However, deeper RLUSD liquidity pools may also incentivize market makers to hold XRP in exchange for RLUSD and collect fees through automated market makers (AMM), thereby increasing the role of XRP in liquidity and routing layers.

Three Possible Development Paths

1. OCC Charter + Federal Reserve Main Account

RLUSD reserves can be directly stored at the Federal Reserve, with settlement completed through the Fed system.

The connectivity speed of banks and payment institutions has accelerated, significantly increasing institutional traffic on XRPL and Ethereum.

The role of XRP in AMM and Liquidity routing is enhanced.

2. OCC License, No Master Account

Still a federally qualified issuer, holding reserves through a regulated bank.

Easily align with regulatory systems such as those of the EU and Hong Kong, expanding international cooperation.

XRP maintains its liquidity and inventory asset role on XRPL.

3. No license

Continue to rely on state-level trust qualifications and operate diversely with partner banks.

RLUSD growth is limited by the coverage of exchanges and payment networks.

The role and status of XRP are the same, lacking additional growth momentum.

Conclusion: Marginalized or Enhanced, Depending on Market Structure

The OCC charter will not directly erase the native role of XRP in the XRPL, but will clearly delineate the functional boundaries between RLUSD as a regulated settlement asset and XRP as a liquidity and routing asset.

If Ripple successfully obtains approval and promotes the application of RLUSD on XRPL, the deep liquidity of the stablecoin may instead amplify the value of XRP in market making, cross-asset discovery, and the network economy.