Analysis: Ripple and Circle apply to become US banks, which may change the competitive landscape of financial technology.

CoinVoice has recently learned that, according to DL News, two major stablecoin issuers in the cryptocurrency space, Ripple and Circle, have applied for a national trust bank license in the United States. If approved, this move will subject them to federal regulation and bring them closer to the core of the U.S. financial system. Obtaining the license will place both companies under the oversight of the OCC, requiring them to comply with the same capital, liquidity, and risk standards as traditional banks.

Chris Colson, a payment expert at the Atlanta Federal Reserve Bank, stated that this is significant for Crypto Assets, primarily because it indicates that stablecoins will truly enter the financial mainstream. Additionally, obtaining a banking license means that these two companies can act as federally regulated accomplices, holding stablecoin reserves and potentially accessing the Federal Reserve's real-time payment system. He emphasized, "The actions of Circle and Ripple blur the lines between fintech and traditional banking," which poses significant competition to existing banks.