Ripple’s RLUSD Makes European Debut: Luxembourg Emerges as Crypto Powerhouse

Ripple just planted its flag in Europe—and Luxembourg's regulators didn't even flinch. The blockchain giant's stablecoin RLUSD is now live on the continent, with the tiny tax haven serving as its springboard into the EU's $12T economy.

Why Luxembourg? Banks love 'innovation' when it's wrapped in compliance theater.

The move signals Ripple's end-run around US regulators still clutching their pearls over crypto. RLUSD gives institutions a dollar-pegged token without the SEC's meddling—and Europe's hungry for alternatives to US-dominated stablecoins.

Watch for liquidity to surge as Luxembourg's fund managers—always late but well-dressed—start allocating to crypto 'for diversification purposes.' Translation: their clients demanded it after missing the last bull run.

$3, the issuer of XRP, has embraced a significant strategic move by opting for Luxembourg as its focal point for introducing its stablecoin, RLUSD, to the European market. The organization plans to apply for an Electronic Money Institution (EMI) license through its recently established entity, Ripple Payments Europe SA, initiated in April. This endeavor targets complete compliance with the Markets in Crypto-Assets (MiCA) regulations and aims to offer seamless services across 30 countries within the European Economic Area (EEA). A spokesperson from Ripple underscored the collaborative efforts with regulators in this meticulous planning.

ContentsLuxembourg: The Starting Point for RLUSD’s European ExpansionGlobal Moves Accompany MiCA-Compliant Strategy

Luxembourg: The Starting Point for RLUSD’s European Expansion

Luxembourg emerges as an ideal transition hub for Ripple, thanks to its robust cluster of international banks. Once the new formation managing RLUSD acquires the EMI license, it will facilitate the distribution of the stablecoin across the EEA’s 30 countries with a single passport. Commenced in July, MiCA imposes reserve requirements and transparency standards on issuers. To meet liquidity demands and boost investor trust, Ripple intends to diversify its reserves through partnership with banks like BNY Mellon. Chris Myers, EMEA Senior Advisor, is recognized as a crucial figure orchestrating the licensing process with Luxembourg’s CSSF authority.

The scarcity of stablecoin issuers in Luxembourg presents Ripple with an opportunity to gain market share. Unlike France, the country is focused not on systemic banks but rather on international securities volume and technology-centric finance firms. Given such limited competition, Ripple executives believe RLUSD will rapidly gain traction as a reliable, regulator-approved choice.

Global Moves Accompany MiCA-Compliant Strategy

Beyond Europe, RLUSD seeks regulatory acceptance in the Middle East as well. Authorities in Dubai have recognized the coin as a registered cryptocurrency, bolstering the city’s image as a burgeoning digital hub. To further augment user access, Ripple’s collaboration with Alchemy Pay enables the purchase of RLUSD through over 300 local payment methods in more than 170 countries, facilitating direct fiat conversion without entering peer-to-peer markets.

Since its market introduction, RLUSD has reached a supply size exceeding $500 million, listed on exchanges such as Bitstamp, Kraken, Bitget, and Archax. According to CoinMarketCap, its daily trading volume hovers around $94 million.

In the United States, the accepted GENIUS Act, in tandem with MiCA in Europe, introduces clear guidelines for stablecoins, with Ripple aiming to be a regulator-approved outfit simultaneously across both continents.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.