Ripple recently secured a crypto-asset service provider license in Luxembourg, allowing it to operate regulated payment services across the entire European Economic Area. This expansion gives Ripple a significant advantage in offering compliant financial solutions in over 30 countries.

But this development raises an important question for XRP holders. The license is granted to Ripple the company, not to XRP, the cryptocurrency often linked to its payment network. This means banks and institutions might not necessarily use XRP when using Ripple’s settlement infrastructure.

Ripple had already earned an electronic-money license in February, and combined with this new authorization, it now enjoys passporting rights throughout the EEA. Such regulatory backing could make Ripple a leading player in the European crypto payments space, especially as competitors like Binance have recently pulled back, withdrawing license applications and suspending services in some EU markets.

According to analysis on the Fire Hustle YouTube channel, only about 210 to 240 companies out of over 1,000 applicants have received full regulatory approval in Europe. This scarcity narrows the competition field, and Ripple’s track record of handling over $100 billion in payments across 60 countries could attract banks looking for reliable partners.

However, the key detail remains: just because Ripple has the license doesn’t mean XRP must be used for settlements. The infrastructure allows banks to access XRP as a bridge currency for cross-border transfers, but usage is optional. Some institutions might prefer Ripple’s stablecoin, RLUSD, which is pegged to the US dollar and avoids the volatility concerns associated with XRP.

XRP’s market capitalization hovered around $67 to $70 billion during the time of the licensing announcement, with futures open interest recovering but still below recent peaks. The token’s price showed minimal immediate reaction to the news, reflecting uncertainty about how much this license will directly boost XRP’s usage.

This situation sharpens an ongoing debate: should Ripple focus on XRP as its primary bridge asset, or lean more heavily on stablecoins like RLUSD to gain traction with European banks? The stablecoin option offers a predictable value that might appeal more to financial institutions wary of crypto volatility.