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Ahmed Barakat
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Ripple has received the initial approval of a Crypto Asset Service Provider from the Luxembourg CSSF under the EU’s MiCA regulations, and XRP dropped 3% on the matter. The token is trading at $1.10, down 5% in 24 hours, with the crypto market providing cover.
The result of the correction is real, but, unfortunately, not the support of XRP. Ripple has organized the entire approval process around RLUSD and Ripple Payments, with XRP seen as something that “powers” those solutions, a footnote in Ripple’s announcement about its online token.
CASP’s green light supports crypto-asset managed services in all 30 countries of the European Economic Area. It does not create a direct demand method for XRP.
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Ripple MiCA Win With Infrastructure Plan, Not XRP Demand Catalyst
The CSSF’s green light is the “Green Light Letter,” a preliminary approval that remains subject to final conditions before being fully issued by MiCA. Ripple said that once fully approved, the CASP license, together with its EU Electronic Money Institution (EMI) license, which was also granted in Luxembourg, will make MiCA compatible.
What the approval includes is Ripple Payments and the RLUSD distribution base. The marketing proposition is that European banks, fintechs, and companies can collect, exchange, and pay through a single Ripple integration across the entire EEA.
There is one more thing that the announcement does not address. The CASP license authorizes crypto-asset services, but it is separate from the separate license that a stablecoin requires to be issued as a MiCA e-money token. Ripple’s announcement refers to stablecoin payments without explaining how RLUSD stands under MiCA’s non-euro regime, which prevents the use of dollar-pegged stablecoins as a block exchange.
Tether’s USDT, on the other hand, was successfully pushed from Europe ahead of the launch of MiCA. Circle, however, introduced USDC and EURC to match its EMI. That RLUSD The content of the group is what the organizations will want to be addressed before entering into a contract.
Ripple is also arriving at the event relatively late. MiCA was fully implemented for crypto-asset service providers in December 2024. Circle received its approval in April 2025, and B2C2 received CASP approval from the Luxembourg CSSF in May 2025. OKX, Coinbase, and Kraken were removed in 2025.
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The differentiating argument of Ripple is the integrated EMI-plus-CASP, “one controlled rail for all payment channels” supported by $100 billion in Ripple Payments volume in 60 integrated markets and more than 75 licenses worldwide. It is a reliable business idea. It does not drive money or demand through XRP.
This model is not new. XRP people publicly pushed on Ripple’s Swell 2026 agenda last week to prioritize the development of RLUSD while the token is not doing well. RLUSD’s regulatory framework also extends to Europeand the California DFAL filing deadline adds another stablecoin-focused challenge to the list.
It is true that every major announcement of Ripple this cycle has come as a confirmation of the same idea: the company is developing a payment system in which RLUSD is the product, and XRP is the foundation. MiCA’s green light isn’t priced in right now – because, strategically, you don’t have any XRP to sell.
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