Ripple Secures Preliminary MiCA Approval in Luxembourg, Expands EU Push

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The approval would allow Ripple to roll out its stablecoin-based payment infrastructure to European businesses while also broadening its range of crypto services in the region.

Ripple, the blockchain firm behind the XRP Ledger, is moving closer to full regulatory authorization in the European Union through a licensing process in Luxembourg.

The San Francisco-based company said Tuesday it had received preliminary approval for a Crypto Asset Service Provider (CASP) license from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), under the EU’s Markets in Crypto-Assets (MiCA) framework.

Once finalized, the license would permit Ripple to provide stablecoin payment solutions to European firms and expand into additional crypto-related offerings, according to the company.

Under MiCA, approval in one EU member state allows firms to passport their services across the entire bloc.

The regulatory regime, introduced as one of the most comprehensive crypto frameworks globally when adopted in 2023, has recently faced growing scrutiny. The European Commission launched a review last month to evaluate whether MiCA remains fully effective in its current form.

Critics have pointed to limitations in its stablecoin provisions, including restrictions on interest payments and reserve rules requiring issuers to hold up to 60% of backing assets in cash deposits at commercial banks.