Ripple has made no secret of its desire to be a global payments player, including with its RLUSD stablecoin, with Europe representing a crucial market for this expansion. To comply with MiCA crypto regulations across the European Economic Area (EEA), the company must register as an electronic money institution (EMI). Industry sources indicate Ripple has applied for an EMI license in Luxembourg, which would enable operations across all 30 EEA countries.
Supporting this move, Ripple incorporated Ripple Payments Europe SA in Luxembourg in April. Three senior UK personnel are listed as administrators, including Chris Myers, Senior Counsel for EMEA operations, who would oversee the EMI application with Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
Recent job postings provide additional evidence of Ripple’s EU stablecoin ambitions. While the company officially operates from San Francisco, New York, London and Singapore, it has been advertising roles in Toronto, Geneva and Luxembourg. Notable positions include a “Product controller Payments and Stablecoin” role in Luxembourg and current openings for anti money laundering and compliance staff.
We contacted Ripple for confirmation, and a spokesperson said it is pursuing licenses in various jurisdictions, including the EU. “We see significant opportunity in the European market and we intend to become MiCA-compliant,” they said.
Luxembourg offers strategic advantages for stablecoins
Despite hosting only one other stablecoin issuer, Banking Circle, Luxembourg presents compelling benefits for Ripple’s European strategy. As a major financial hub, most global banks maintain operations there, including BNY, Ripple’s recently announced stablecoin custody bank. This extensive banking network provides crucial connectivity advantages, likely explaining PayPal’s decision to establish a Luxembourg bank years ago.
EU regulations require stablecoin issuers to hold substantial reserves at banks: 30% for smaller operations and 60% for larger ones. Additionally, concentration limits restrict holdings to 5% to 15% of reserves per bank, or 25% for systemically important institutions. Luxembourg’s broad banking ecosystem makes compliance with these diversification requirements more manageable.
While France leads with three EMI licenses, partly due to hosting four global systemically important banks compared to one each in Germany, Netherlands and Spain, Luxembourg compensates through its status as a preferred location for most major international banks.