Ripple’s EU Licenses: A Regulatory Win That Might Undermine XRP’s Future

Ripple’s regulatory breakthroughs in Europe mask a deeper dilemma: Will XRP thrive as a compliance-driven settlement token—or fade into a niche role as stablecoins dominate cross-border flows?

Ripple recently secured preliminary approval from Luxembourg’s CSSF for an Electronic Money Institution (EMI) licence, enabling the firm to passport services across EU countries under the Markets in Crypto-Assets (MiCA) regulation.

This license, paired with an FCA-approved EMI licence in the UK, forms the backbone of Ripple’s dual-hub strategy. The firm now operates in both jurisdictions, with AMINA Bank leveraging Ripple’s payments solution to integrate RLUSD, a stablecoin, into its cross-border workflows.

At the technical level, Ripple’s XRP Ledger (XRPL) introduced Permissioned Domains—a feature allowing institutional-grade controls on a public blockchain. The company claims this balances transparency with compliance, avoiding the trade-offs inherent in private chains.

Ripple’s CEO said:

"The EU was amongst the first major jurisdictions to introduce comprehensive digital assets regulation."

Ripple’s regulatory momentum is underscored by 75+ global licenses and a processed volume of $95B+, reaching 90% of daily FX markets. However, the integration of RLUSD by AMINA Bank highlights a potential shift toward stablecoin-led payments over XRP. This trend raises questions about the token’s structural demand, despite a 3% price rise to $2.17 amid regulatory progress.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.