Ripple is planning to expand its operations in the digital asset marketplace by applying for a Markets in Crypto-Assets (MiCA) license in the European Union. This move could significantly alter how XRP is utilized in regulated financial markets.
MiCA License Goals for Ripple
Under the MiCA framework, Ripple will have the right to issue its stablecoin RLUSD across all 27 EU member countries. This will enable the company to operate across borders without the restrictions that previously limited cryptocurrency payment systems.
Stablecoin Strategy Based on XRP Liquidity
RLUSD will be integrated with a liquidity mechanism in XRP, which is expected to enhance the token’s practical applications in financial transactions. Additionally, Ripple is looking to partner with BNY Mellon for the custody of RLUSD.
Europe as a Launchpad for Global XRP Utility
Ripple’s focus on the EU comes amid regulatory uncertainties in the US. The MiCA license provides a unified legal framework, allowing Ripple to build financial applications in Europe.
The MiCA license and the EU launch of RLUSD signify a new chapter for XRP's role in regulated finance, offering broader legitimacy and recognition for the token on the international stage.
