Ripple’s massive license victory hides a structural shift that could actually divert volume away from XRP
Ripple's EU licensing victory enables a dual-hub strategy but may accelerate stablecoin use, potentially diverting settlement volume from XRP.Summary
Ripple secured preliminary approval for an Electronic Money Institution (EMI) license from Luxembourg's CSSF, complementing its recent UK FCA approval to establish a dual-hub strategy for servicing the EU and UK markets. This regulatory momentum coincides with technical upgrades to the XRP Ledger (XRPL), specifically 'Permissioned Domains,' designed to introduce institutional-grade controls necessary for broader adoption. However, the article questions whether this regulatory success will boost XRP usage. Ripple Payments offers flexibility, allowing transactions to be settled using either XRP or stablecoins like RLUSD. This flexibility means the compliance advantages gained in Europe could favor a stablecoin-led model, relegating XRP to a specialist instrument used only when demonstrably cheaper or more liquid than stablecoins, rather than the primary settlement asset.
(Source：CryptoSlate)