Ripple’s MiCA Approval Fuels RLUSD, XRP Holds $1.10 Support

Ripple Secures Preliminary EU Crypto License, XRP Sees Little Impact

Ripple has obtained preliminary approval as a Crypto Asset Service Provider (CASP) from Luxembourg’s financial regulator, the CSSF, under the European Union’s Markets in Crypto-Assets (MiCA) regulation. Despite this significant regulatory milestone, the price of XRP dipped 3% following the announcement, trading at $1.10 and down 5% over the past 24 hours amid a broader crypto market downturn.

The approval, while a genuine regulatory achievement, did not translate into a direct catalyst for XRP. Ripple’s announcement framed the development primarily around its stablecoin, RLUSD, and its Ripple Payments infrastructure. XRP was mentioned only as a foundational element supporting these solutions, appearing as a secondary detail within Ripple’s own communication about its network’s native token.

This CASP green light permits Ripple to offer regulated crypto-asset services across all 30 member states of the European Economic Area. However, it does not establish a direct demand mechanism for XRP.

A Phased Approval Process

The CSSF’s approval takes the form of a “Green Light Letter,” signifying preliminary consent that is contingent upon meeting final conditions before full MiCA compliance is officially conferred. Ripple stated that once fully approved, this CASP license, combined with its existing Electronic Money Institution (EMI) license also issued by Luxembourg, will ensure its complete compliance with MiCA.

The core of this approval focuses on Ripple Payments and the infrastructure for distributing RLUSD. The commercial proposition is that European banks, fintech companies, and corporations can manage collections, exchanges, and payouts through a single, integrated Ripple solution spanning the entire EEA.

Stablecoin Status Under MiCA Remains Unclear

A crucial nuance not fully resolved by Ripple’s announcement concerns the regulatory standing of RLUSD itself. While a CASP license authorizes crypto-asset services, it is distinct from the separate authorization required for a stablecoin to be issued as a MiCA e-money token. Ripple’s announcement highlights its stablecoin payments infrastructure but does not clarify RLUSD’s specific status under MiCA’s non-euro token regime, which imposes limitations on the use of dollar-pegged stablecoins as a means of exchange within the bloc.

In contrast, Tether’s USDT was effectively excluded from the European market prior to MiCA’s implementation, as Tether opted not to seek approval. Circle, however, successfully brought its stablecoins, USDC and EURC, into compliance through its EMI. The precise positioning of RLUSD within this regulatory landscape is a key question that institutions will likely seek clarification on before committing to integration.

Late Entry Compared to Competitors

Ripple’s achievement also comes later than that of some of its peers. MiCA became fully applicable to crypto-asset service providers in December 2024. Competitors like Circle secured their approvals in April 2025, while B2C2 obtained a CASP license from the Luxembourg CSSF in May 2025. Major exchanges such as OKX, Coinbase, and Kraken also received clearance throughout 2025.

A Comprehensive Payments Solution

Ripple’s key differentiator lies in its combined EMI and CASP offering, presenting a “one regulated rail for the entire payments flow.” This is supported by over $100 billion in Ripple Payments volume across more than 60 markets and a global portfolio of over 75 licenses, presenting a compelling proposition for enterprise clients. Crucially, this strategy does not direct revenue or demand through XRP.

This approach is consistent with a broader trend. The XRP community has recently voiced concerns about Ripple’s strategic priorities, particularly regarding the development of RLUSD over the performance of XRP. RLUSD’s regulatory pathway extends beyond Europe, with a California DFAL filing deadline adding another stablecoin-focused regulatory hurdle.

The consistent pattern across major Ripple announcements this cycle confirms a singular thesis: the company is building a compliant payments infrastructure where RLUSD is the primary product, and XRP serves as background infrastructure. The MiCA green light has not yet been factored into XRP’s valuation because, structurally, there is no direct benefit for XRP to be priced in.