Ripple’s RLUSD Charges Into Europe—Because Stablecoins Need More Banks, Right?
Ripple’s dollar-pegged RLUSD is making a play for European dominance—just as regulators start eyeing stablecoins like hawks eyeing a wounded pigeon.
Why Europe? Call it a calculated gamble. With MiCA regulations looming, Ripple’s betting that a compliant stablecoin will charm risk-averse institutions. Never mind that most still think ’blockchain’ is a Scandinavian furniture brand.
The move reeks of opportunism—but hey, in crypto, that’s just called ’strategy.’ Watch this space as RLUSD either becomes the eurozone’s darling or another cautionary tale for your next compliance training.
$2’s RLUSD stablecoin, which is fully compliant with MiCA’s regulations. European exchange Bitstamp’s decision to list RLUSD has increased the likelihood of it filling the void left by Tether.
ContentsRipple’s Strategic MOVE with RLUSDCompetitors in the Stablecoin Arena
Ripple’s Strategic Move with RLUSD
Tether’s exit from Europe has created a substantial liquidity gap in the continent’s crypto market. MiCA does not only impose strict cash reserve requirements but also mandates direct banking relationships within the EU and bans steady yield payments. These new rules have drastically changed the game for prominent yet regulation-averse stablecoins like USDT. Instead of adapting, Tether decided to withdraw from the European market.
This development presents a massive opportunity for Ripple’s RLUSD. Launched in December 2024, RLUSD operates on both Ethereum
$2,680 and the XRP Ledger, and it fully complies with MiCA regulations. Its listing on a significant European exchange like Bitstamp highlights Ripple’s intention to expand its impact in this market. Unlike other stablecoin projects, Ripple has pursued global partnerships rather than solely focusing on the US market, a strategy that appears to be paying off.
Competitors in the Stablecoin Arena
Another contender to fill the void left by USDT’s European exit is Circle’s USDC and EURC stablecoins. However, experts note that these coins’ market cap currently pales in comparison to USDT’s. While compliance with MiCA offers a critical advantage, volume and usage rates still fall short of matching Tether’s liquidity. Analyst Jake Claver describes USDC as “small but compliant,” Tether as “large yet unregulated,” with Ripple striking a balance between these extremes.
Ripple’s RLUSD stablecoin holds a strong position not only in Europe but also in markets like Asia, where regulatory compliance gains increasing importance. This positions RLUSD not just as a temporary stopgap but as a long-term market player. The transformative shifts in the cryptocurrency market affect not only the stablecoin ecosystem but also the overall market balance. Tether’s withdrawal may trigger a new demand wave for Bitcoin
$110,565 and XRP. Especially, projects compliant with regulations are now expected to rise prominently.
