Just-In: Ripple Debuts EU Expansion for RLUSD Stablecoin Via Luxembourg

Ripple is expanding into the European market with its RLUSD stablecoin. It is focusing on Luxembourg as its entry point under the new MiCA rules. This move shows Ripple’s goal to establish RLUSD as a fully compliant solution for cross-border digital assets.

RLUSD Set for EU Debut via Luxembourg

In a recent post from Ledger Insights, Ripple confirmed that it has started plans to integrate RLUSD into the EU via Luxembourg. The company had initially established Ripple Payments Europe SA in Luxembourg in April, marking the start of its EU expansion process.

The application for an Electronic Money Institution (EMI) licence, which would allow RLUSD to conduct business as usual throughout all 30 European Economic Area (EEA) nations, is anticipated to be handled by this new organisation.

A spokesperson for Ripple noted that this represents a significant opportunity in the European market, and the company intends to become MiCA-compliant, underscoring its strategy of working alongside regulators rather than circumventing them.

Despite having very few stablecoin issuers, Luxembourg offers Ripple several essential benefits. The country is a significant financial center where numerous global banks, including Ripple’s partner BNY Mellon, are based. This strong network of banks is crucial for meeting EU rules that require stablecoin issuers to keep significant and diverse reserves across different institutions.

Luxembourg’s extensive international banking ecosystem makes it an appealing choice for Ripple to support the expansion of RLUSD throughout the region, even though France leads in EMI licenses because of its concentration of systemically important banks.

EMEA Senior Counsel Chris Myers, a senior staff member in Luxembourg, supports Ripple’s regulatory-first strategy. He will help guide RLUSD through the EMI licensing process with Luxembourg’s CSSF regulator.

RLUSD Momentum Grows with More Milestones

Ripple is expanding its efforts beyond Europe. In Dubai, RLUSD has been recognized as a crypto token, which supports the city’s image as a growing digital asset center. To help more people use RLUSD, Alchemy Pay has teamed up with Ripple to add fiat on-ramps. This move will enable users in over 170 countries to purchase RLUSD directly using more than 300 local payment methods, significantly reducing barriers to global cryptocurrency participation.

With listings on exchanges like Bitstamp, Kraken, Bitget, and Archax, RLUSD has experienced early traction since its launch. The stablecoin has already reached a supply of over $500 million. It boasts daily trading volumes of nearly $94 million, according to CoinMarketCap data.

Ripple’s RLUSD expansion comes alongside other significant developments in stablecoins. This includes the approval of the GENIUS Act in the U.S., which may introduce more straightforward national guidelines. Meanwhile, the EU’s MiCA regulation establishes a harmonized framework aimed at enhancing investor protection and transparency across digital assets.