Ripple's EU License Strengthens Payments Business Over XRP

Ripple's new Luxembourg license strengthens its ability to offer regulated payment services across the European Economic Area.

The company now has passporting rights across 30 EEA countries, thanks to its combined authorization and electronic-money license received in February. However, this regulatory progress may not have a significant impact on XRP itself, according to Fire Hustle's YouTube video. The show host Summer argues that banks may increasingly choose RLUSD over XRP for settlement, given the token's volatility.

The timing of Ripple's authorization is notable, as Binance reportedly withdrew its European licensing application in Greece in late June and halted new services in several EU markets. Only around 210-240 firms have received full regulatory approvals out of more than 1,000 applicants, potentially leaving Ripple competing in a less crowded market for institutional crypto-payment services.

XRP holders should be aware that the license belongs to the company, not the token itself. While Ripple's infrastructure may give banks access to XRP as a bridge currency for cross-border conversions, there is no automatic demand for it. RLUSD transactions on the XRP Ledger still consume XRP for fees, but those charges begin at 10 drops (0.00001 XRP) and are burned.