On July 15th, Ripple has applied for an electronic money license in Luxembourg, planning to introduce its stablecoin RLUSD to the European market. If approved, the license will allow RLUSD to operate throughout the European Union, complying with the EU's Markets in Crypto-Assets (MiCA) regulations.

In April of this year, Ripple established a subsidiary in Luxembourg called Ripple Payments Europe SA, which appears to be in preparation for the aforementioned license application. Luxembourg has a large number of banking institutions, providing stablecoin issuers with a variety of options for storing reserve funds, in accordance with MiCA regulations that require stablecoin issuers to hold at least 60% of their reserves in banks.

A Ripple spokesperson said, "We see a huge opportunity in the European market and plan to comply with MiCA regulations." Last week, Ripple also appointed the Bank of New York as the primary custodian of the funds behind RLUSD.