Ripple’s MiCA Greenlight Lifts RLUSD While XRP Holds $1.10 Support

Ripple has obtained preliminary approval as a Crypto Asset Service Provider (CASP) from Luxembourg’s CSSF under the EU’s MiCA framework, yet XRP failed to benefit from the development. The token fell 3% following the news and is currently trading around $1.10, down roughly 5% over the past 24 hours amid broader market weakness.

While the regulatory milestone is significant, it did not act as a catalyst for XRP. Ripple’s announcement centered almost entirely on its RLUSD stablecoin and Ripple Payments infrastructure, with XRP mentioned only as a supporting component rather than a primary driver of value.

The CASP approval allows Ripple to offer regulated crypto services across all 30 countries in the European Economic Area. However, it does not directly create demand for XRP.

The CSSF approval takes the form of a “Green Light Letter,” meaning it is conditional and subject to final requirements before full MiCA authorization is granted. Once finalized, Ripple’s CASP license, combined with its existing Electronic Money Institution (EMI) license in Luxembourg, would position the company as fully compliant under MiCA.

In practical terms, the approval covers Ripple’s payments infrastructure and RLUSD distribution. This enables banks, fintech firms, and corporates in Europe to access a unified system for collections, currency exchange, and payouts across the region through a single integration.

However, some regulatory ambiguity remains. A CASP license governs crypto services, but it is separate from the approval required to issue a stablecoin as a MiCA-compliant e-money token. Ripple has highlighted its stablecoin infrastructure without clearly addressing RLUSD’s classification under MiCA rules, particularly given restrictions on non-euro stablecoins used for payments within the EU.

For context, Tether’s USDT faced significant limitations in Europe ahead of MiCA implementation, while Circle successfully aligned USDC and EURC with regulatory requirements through its EMI license. RLUSD’s position within this framework remains unclear and is likely a key consideration for institutional adoption.

Ripple is also reaching this milestone later than several competitors. MiCA rules became fully applicable in December 2024, with firms like Circle, B2C2, OKX, Coinbase, and Kraken securing approvals throughout 2025.

Ripple’s core differentiator is its combined EMI and CASP structure, offering what it describes as a fully regulated, end-to-end payments rail. Backed by more than $100 billion in transaction volume across over 60 markets and 75 licenses worldwide, this presents a strong enterprise proposition—but one that does not inherently drive demand for XRP.

This dynamic has drawn criticism from the XRP community, particularly as Ripple continues to prioritize RLUSD development while XRP price performance lags. The stablecoin also faces additional regulatory steps outside Europe, including oversight requirements in California.

Overall, Ripple’s latest announcement reinforces a broader trend: the company is building a compliant global payments infrastructure where RLUSD serves as the core product, and XRP plays a secondary, underlying role. As a result, the MiCA approval has had little immediate impact on XRP’s market performance.