# Ripple's EU License Raises Questions About XRP's Future

How will Ripple's new license shape the utility of XRP?

- **Source:** [DailyCoin](https://brifing.si/source/3e9b0f85-cb2f-40ee-ba61-db9410cf0937)
- **Published:** 2026-07-27
- **Topic:** [Finance](https://brifing.si/c/finance)
- **Original article:** <https://dailycoin.com/ripples-eu-license-win-raises-a-hard-question-for-xrp/>
- **On Brifing:** https://brifing.si/s/d08fe48e-f7fd-4afe-969e-1dba41dad914

## Ripple's European Milestone

Ripple has obtained a crypto-asset service provider license in Luxembourg, authorizing regulated payment services across the European Economic Area. While this strengthens Ripple's position, it raises questions about XRP's future utility in the evolving financial landscape.

## XRP vs. RLUSD Dilemma

The new license may incentivize banks to prefer Ripple's RLUSD stablecoin over volatile XRP for settlements. RLUSD's stability could make it more attractive for institutional cross-border payments, potentially marginalizing XRP's role as a bridge currency.

## Market Dynamics

Ripple boasts over $100 billion in processed payments across 60+ countries. However, the license applies to the company, not XRP itself. Market data shows limited immediate price reaction to the news, reflecting investor uncertainty about XRP's adoption.

## RLUSD's Rapid Growth

RLUSD's supply has surged from $132 million to $1.5-1.8 billion within a year, now dominating stablecoin balances on the XRP Ledger. This growth intensifies debates about whether XRP's utility can compete with Ripple's own stablecoin solution.

## XRP Supply Economics

Ripple continues to release XRP from escrow, with 37 billion tokens still locked. However, stagnant XRP demand alongside RLUSD expansion may not significantly alter the token's economics. European institutional adoption patterns will be critical to watch.

## Future Scenarios

While Ripple's regulatory progress benefits the company, it may not directly enhance XRP's value proposition. The risk of RLUSD overshadowing XRP remains a long-term concern for investors, depending on how institutions utilize Ripple's licensed infrastructure.

## Sources covering this story

- https://dailycoin.com/ripples-eu-license-win-raises-a-hard-question-for-xrp/ — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._