Ripple is advancing its European expansion by planning to roll out its RLUSD stablecoin across the European Economic Area (EEA). To facilitate this, Ripple has applied for an electronic money institution (EMI) license in Luxembourg.
Founded earlier this year, Ripple Payments Europe SA in Luxembourg is spearheading the initiative. The EMI application is being reviewed by Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF). Once granted, the license will enable RLUSD transactions throughout all 30 EEA countries, leveraging EU-wide passporting provisions.
A license in Luxembourg is considered ideal due to its robust financial infrastructure and favourable regulatory environment. It has a well-established banking network, and Ripple’s custody partner, BNY Mellon, and other global banks maintain operations there. The region offers strong connectivity with fiat payment systems, which is critical for stablecoin reserve backing and liquidity management.
This move aligns with the EU’s upcoming MiCA (Markets in Crypto-Assets) regime, which requires stablecoin issuers to hold sufficient reserves and comply with stringent rules. Ripple confirmed that it intends to be fully MiCA-compliant, opting for a collaborative regulatory approach rather than a workaround.
The EU’s stance on stablecoins is cautious but supportive. Regulators are concerned that foreign stablecoins could undermine monetary policy, especially if they compete with the euro. However, they also recognize the potential of digital euro initiatives. Regulated stablecoins are increasingly seen as a complementary force in the financial system.
Under MiCA, stablecoin issuance is permitted, provided issuers meet tough capital, transparency, and anti-money laundering standards. Ripple’s Luxembourg push demonstrates a strategic effort to integrate RLUSD into Europe’s financial systems. This could potentially set a benchmark for cross-border digital asset integration in the region.