Ripple has received a preliminary “Green Light Letter” from Luxembourg’s financial regulator, the CSSF, for a Crypto-Asset Service Provider (CASP) license. The approval, dated June 23, positions the company to prepare MiCA-compliant operations across the European Economic Area ahead of the July 1 deadline that ends the bloc’s grandfathering window.
This conditional commitment, paired with the Electronic Money Institution (EMI) license Ripple finalized in Luxembourg in February, gives the firm a dual-license framework. Together, they allow Ripple to offer a single regulated integration for cash and crypto services—covering payments, custody, transfer, and its stablecoin RLUSD—once all conditions are met.
However, the Green Light Letter is not a final license. Ripple must now provide detailed proof for each service: a three-year business plan, a capital test proving the Luxembourg entity holds its own funds or insurance, and a governance structure that demonstrates real local decision-making with a named management team and a CEO dedicating effectively all their time to the entity. The CSSF will also scrutinize how Ripple keeps its stablecoin issuance and crypto services separate, a conflict ESMA has flagged as higher risk.
The stablecoin RLUSD, with a circulating supply of around $1.6 billion, falls under MiCA’s e-money token rules. The European Banking Authority has confirmed that transferring or holding stablecoins constitutes a payment service, so Ripple must maintain a payments license alongside its CASP application—which it already holds via the EMI. This gives Ripple a regulatory edge but also triggers closer oversight on role separation.
Despite the milestone, XRP traded near $1.10 on June 25, largely unmoved by the news, suggesting the market had already priced in regulatory progress. The real price catalyst will be the volume that eventually flows through Ripple’s licensed European rails once the conditions are satisfied.
