Ripple’s RLUSD Goes Global: Fedwire Shakeup and MiCA Compliance Fuel Expansion

Ripple just flipped the switch on RLUSD's global rollout—and the timing couldn't be more strategic.

Fedwire's legacy system stumbles while Ripple sprints ahead

As the US Treasury's 50-year-old settlement system shows its age (Fedwire processed $4 trillion daily in 2023—with 60-hour downtime that year), Ripple's blockchain-native RLUSD cuts settlement times to seconds. The stablecoin now bridges 40+ markets overnight.

MiCA's regulatory green light supercharges adoption

Europe's Markets in Crypto-Assets regulation gives RLUSD something Tether never had: full compliance across 27 nations. Watch institutional money flood in as MiCA's July 2025 deadline forces TradFi players to finally pick their crypto partners.

Bankers hate this one weird trick

Ripple's masterstroke? Converting XRP's liquidity pool into RLUSD collateral—turning volatility into stability while keeping that sweet cross-border efficiency. Meanwhile, Wall Street still charges $25 for international wires that take three days. Progress.

Securing stablecoin licenses for RLUSD

Securing an EMI license in one member state grants passporting rights to operate across all 30 European Economic Area (EEA) countries, making this a highly efficient strategy for continental expansion. In April, the company incorporated “Ripple Payments Europe SA” in Luxembourg, signaling its concrete commitment to this path.

The choice of Luxembourg may be considered a masterstroke of strategic planning. The nation is a premier international financial hub where Coinbase recently secured a license. It hosts operations for most of the world’s major banks, including BNY Mellon, which Ripple has already tapped as the primary custodian for its RLUSD stablecoin reserves. This DEEP banking ecosystem is critically important for complying with MiCA’s stringent reserve requirements, which mandate that stablecoin issuers diversify their reserve assets across multiple banking institutions.

By setting up in a location with a high concentration of banking partners, Ripple can more easily manage these complex diversification rules. This MOVE also builds on Ripple’s existing presence in the country, which includes a research partnership on micropayments with the University of Luxembourg dating back to 2019.

While geographically separate, these two developments are two sides of the same coin: a coherent global strategy. Ripple’s success with ISO 20022 is a victory for its “picks and shovels” approach.

Rather than attempting to disrupt and replace legacy financial systems, Ripple integrated with and enhanced them. By investing in compliance with the upgraded financial plumbing years in advance, the company has now become a go-to service provider for the modernized system.

At the same time, Ripple is navigating the global regulatory landscape through jurisdictional arbitrage. Faced with a fragmented yet improving stablecoin environment in the U.S., the company is not waiting for clarity. Instead, it is seizing the clear regulatory pathway provided by MiCA in the EU to build out its RLUSD business. This allows it to gain market share and operational positioning in a regulated environment while simultaneously continuing to build its technical and legal foundation in the U.S. through ISO 20022 compliance and applications for domestic licenses.

However, the “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025,” or GENIUS Act, is on the cusp of becoming law, pending a final vote in the U.S. House of Representatives and the President’s signature. The bill aims to create a comprehensive regulatory framework for stablecoins, which WOULD give Ripple clarity for RLUSD in the States.

The GENIUS Act, designated as S. 1582, was passed by the Senate on June 17. It is currently under consideration in the House of Representatives, dubbing the week of July 14-18, 2025, as “Crypto Week” to focus on digital asset legislation.

The GENIUS Act must pass the House of Representatives vote before it becomes law. Following passage by the House, the bill will be sent to the President for his signature. Once the President signs it, the GENIUS Act will officially become law.

Given the current legislative calendar and the stated focus on cryptocurrency-related bills, the final passage of the GENIUS Act could be imminent.