Ripple, the blockchain company behind the XRP Ledger, announced Tuesday that it has received preliminary approval for a Crypto Asset Service Provider (CASP) license from Luxembourg's financial regulator, the CSSF, under the EU's Markets in Crypto Assets (MiCA) regulation. This license, once finalized, will allow Ripple to offer its stablecoin payment systems to European companies and expand into broader crypto services across the EU, as MiCA permits companies approved in one member state to operate in all 27 countries. Ripple's move comes amid ongoing assessment of MiCA's effectiveness; the European Commission opened a consultation in November to evaluate whether the framework remains fit for purpose, especially concerning stablecoin rules that include a ban on interest payments and reserve requirements mandating up to 60% of backing assets held in cash deposits at commercial banks. The preliminary approval reflects Ripple's strategic expansion in Europe, leveraging Luxembourg's regulatory framework.

Key facts

• Ripple received preliminary CASP license approval from Luxembourg's CSSF under MiCA.
• License would enable Ripple to offer stablecoin payment systems across the EU.
• MiCA allows EU-wide crypto services with approval from one member state.
• European Commission launched consultation in Nov on MiCA's continued suitability.
• MiCA stablecoin rules ban interest and require up to 60% cash reserve.

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