Ripple applies for Luxembourg license, plans to expand RLUSD stablecoin to Europe

According to Foresight News, Ripple has applied for an electronic currency license in Luxembourg and plans to introduce its stablecoin RLUSD into the European market. If approved, this license will enable RLUSD to operate throughout the European Union, in compliance with the requirements of the EU's Crypto Asset Market Regulation Act (MiCA). In April of this year, Ripple established a subsidiary in Luxembourg called Ripple Payments Europe SA, which appears to be preparing for the aforementioned license application. Luxembourg has numerous banking institutions that provide stablecoin issuers with diverse options for storing reserve funds, in compliance with MiCA's requirement that at least 60% of stablecoin issuers' reserves must be held in banks. A Ripple spokesperson stated, 'We see huge opportunities in the European market and plan to comply with MiCA regulations.'. Last week, Ripple also appointed Bank of New York as the primary custodian of the funds behind RLUSD.