Ripple's EU License Raises Questions About XRP's Future

Ripple has obtained a crypto-asset service provider license in Luxembourg, which allows it to offer regulated payment services across the European Economic Area (EEA). This license gives Ripple passporting rights in 30 EEA countries.

The company already held an electronic-money license, and with this new one, it can provide more comprehensive financial services. However, the license only applies to Ripple as a company, not the XRP token itself.

This means banks might prefer using RLUSD, Ripple's stablecoin, over XRP for cross-border settlements. The supply of RLUSD has grown significantly, which could limit XRP's role in the network, despite Ripple's expanding regulatory footprint in Europe.