(Reuters) -Crypto firm Ripple is applying for a national bank charter in the U.S., its CEO Brad Garlinghouse wrote in a social media post on Wednesday, shortly after a similar step by stablecoin giant Circle.

Ripple announced it would seek an official US banking license, joining other crypto companies in seeking a link to traditional finance. Banking reserves may raise the reliability of RLUSD, as they become an official requirement based on the Genius stablecoin bill.