Ripple (XRP) is accelerating its European expansion with a bold move: the company wants to launch its own stablecoin, RLUSD, across the European Union. To do so, it has officially applied for a license in Luxembourg, fully aligned with the new MiCA regulations.
RLUSD must be MiCA-compliant
Europe is about to introduce a strict yet clear regulatory framework for stablecoins. Under the new MiCA law, issuers of digital currencies must prove they manage their tokens responsibly. Among other things, this means holding at least sixty percent of reserves with banks. Luxembourg, with its well-developed financial sector, is an ideal location to meet these requirements.
Ripple aims to comply with all MiCA rules through an Electronic Money License. The first step was already taken in April, with the establishment of its subsidiary Ripple Payments Europe SA.
European push follows U.S. ambitions
RLUSD is designed to enable fast and low-cost cross-border payments, offering an alternative to the slow and expensive SWIFT system. The token is still relatively small, with a market cap of around 517 million dollars. In comparison, market leader USDT stands at nearly 160 billion dollars.
While Ripple prepares for Europe, it is also pursuing major ambitions in the United States. The company recently applied for a national bank license, which would provide direct access to the Federal Reserve system. This could allow Ripple to process payments faster and with greater transparency. It may even offer FDIC insurance – a safety net for account holders in the event of bankruptcy.
These developments could also give XRP a stronger position as a bridge currency for international transactions.
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