Ripple’s Luxembourg License Opens Europe as XRP Lingers Near Dollar Floor

Ripple secures EU CASP license, Japan approves RLUSD stablecoin, and XRP spot ETFs see $1.47B inflows, while token faces selling pressure from escrow releases.

The gap between XRP’s market performance and Ripple’s foundational achievements has rarely been wider. The token is trading at $1.04, barely above its 52-week low, having lost nearly 45% of its value since the start of the year. Yet behind the price weakness, the company is securing regulatory approvals at an accelerating pace — and a Senate vote on the CLARITY Act could shift the entire landscape within weeks.

Ripple’s most consequential recent win came from Luxembourg. On June 23, the country’s financial regulator, the CSSF, granted the company a provisional CASP (Crypto Asset Service Provider) license under the European Union’s MiCA framework. Combined with an existing e-money license, the approval allows Ripple to offer regulated crypto services across all 30 countries of the European Economic Area. The move came just days before a July 1 deadline that forces unlicensed crypto firms out of the region.

Parallel momentum is building in Asia. Japan’s Financial Services Agency (JFSA) approved Ripple’s dollar-pegged stablecoin, RLUSD, on June 24. Distributed through SBI VC Trade, the token has already reached a market capitalization of roughly $1.6 billion. RLUSD is being tested in a pilot program with the Monetary Authority of Singapore, focused on cross-border trade finance using smart contracts on the XRP Ledger. Some market observers caution that the stablecoin’s growth may temporarily drain liquidity from XRP itself.

On the technology side, Ripple’s developers are preparing a major upgrade to the XRP Ledger designed to bring native decentralized finance capabilities. Two new protocols would allow users to deposit single assets like XRP into liquidity pools and earn yields, while borrowers gain access to fixed-rate loans — all settled on the ledger without external smart contracts. The community has signaled broad support for the update.

Institutional investors appear undeterred by XRP’s slide. On June 25, forced liquidations of XRP long positions reached $40.73 million, the highest single-day figure since early February. Yet the following day, XRP spot ETFs recorded net inflows of $15.63 million. Over seven consecutive weeks, those funds have accumulated $1.47 billion in net inflows, and the seven U.S.-listed XRP spot ETFs now manage nearly $1 billion in assets. The trend stands in stark contrast to recent outflows from Bitcoin products.

The token’s recovery faces structural headwinds. Of the total 62.5 billion XRP supply, only about 6% is freely tradable. Roughly 33 billion coins remain locked in Ripple’s escrow accounts and are released monthly, creating persistent selling pressure. The relative strength index sits near 31, indicating oversold conditions. Whether that marks a bottom may depend on the outcome of the CLARITY Act, which faces a Senate vote between July 13 and August 7. The bill would classify digital assets like XRP as commodities. Galaxy Digital estimates a 50% chance of passage this year, while Standard Chartered forecasts potential inflows of $4 billion to $8 billion into XRP ETFs if the legislation succeeds.