Ripple has reportedly applied for a license in Luxembourg to introduce its Ripple USD stablecoin in Europe. If granted, the permit would allow the stablecoin to operate across the European Union (EU).
Ripple Seeks RLUSD Entrance to Europe Through Luxembourg
Ripple, one of the largest payment-driven companies in the cryptocurrency world, is reportedly making moves to expand the reach of its stablecoin product, Ripple USD (RLUSD). According to reports from Ledger Insights, the company applied to receive an Electronic Money License in Luxembourg to enable operations with the crypto asset across all of Europe.
The license, which is required to comply with the EU’s Markets in Crypto Assets (MiCA) regulations, would open the doors for exchanges and companies to include RLUSD in their operations.
Ripple already incorporated another company, called Ripple Payments Europe SA, in Luxembourg during April, a move that seems to support the reported license application.
While Luxembourg has only licensed another stablecoin issuer, it presents certain advantages for similar companies, given its broad range of banking companies available. MiCA states that stablecoin issuers should store up to at least 60% of their reserves in banks, with limits regarding the percentages that might be stored in each bank to avoid systemic risks; this is where Luxembourg shines, with an ample selection of banks to choose from for these activities.
When consulted, Ripple did not outright deny these allegations. Instead, the company stated that it was interested in becoming compliant in several regions.
A company spokesperson reportedly declared:
We see significant opportunity in the European market and we intend to become MiCA-compliant.
Last week, Ripple also made two relevant moves focused on expanding the reach of RLUSD and increasing the trust in it. The company appointed BNY, a financial institution with billions in assets under custody (AUC), as the primary custodian of the funds backing RLUSD and is also seeking a national trust bank charter to open new possibilities for its operations.
Read more: Ripple Partners With BNY to Serve as RLUSD Custodian
Read more: Ripple National Trust Bank Targets Fed Access—Is RLUSD About to Go Full Scale?
