Ripple has obtained preliminary Crypto Asset Service Provider (CASP) approval from Luxembourg's CSSF under the EU's MiCA regulation, but XRP dropped 3% on the news. The token is trading at $1.10, down 5% over 24 hours, as the market failed to react positively to the regulatory milestone. The approval is a significant step for Ripple's infrastructure but does not directly benefit XRP's price.
Regulatory Milestone for Payments Infrastructure
The CASP green light enables Ripple to offer regulated crypto-asset services across all 30 countries of the European Economic Area. However, the approval is specifically tied to Ripple Payments and RLUSD distribution infrastructure, not XRP. Ripple framed the announcement around RLUSD and its payments network, with XRP mentioned only as an underlying component. The company aims to provide a single regulated rail for European banks, fintechs, and corporates to handle collection, exchange, and payouts.
XRP Remains a Background Asset
The approval does not create a direct demand mechanism for XRP, as the token is not the primary product in Ripple's strategy. This pattern has been consistent throughout recent announcements: Ripple is building compliant payments infrastructure where RLUSD is the product, and XRP serves as background infrastructure. The XRP community has previously expressed frustration over this focus, especially after Ripple's Swell 2026 agenda prioritized RLUSD development.
Comparison with Peers and Unresolved Questions
Ripple is arriving at this milestone later than some competitors. MiCA became fully applicable in December 2024, with Circle securing approval in April 2025 and B2C2 obtaining a CASP license in May 2025. Ripple's differentiating factor is its combined EMI-plus-CASP license, offering a full-stack payments solution backed by over $100 billion in Ripple Payments volume across 60+ markets. However, the announcement does not clarify RLUSD's standing under MiCA's non-euro token regime, which caps dollar-pegged stablecoins' use as a means of exchange in the bloc. This uncertainty may affect institutional adoption.