In a significant regulatory development, Ripple has obtained full authorization to operate as an Electronic Money Institution (EMI) across the European Union. The approval was granted by Luxembourg’s Financial Sector Supervisory Commission (CSSF) on February 3, 2026. This license provides Ripple with “passporting” rights, allowing it to issue electronic money, process payments, and offer digital financial services throughout all 27 EU member states without needing additional country-specific permissions.

Expanding Global Compliance and Market Context

This Luxembourg license marks a key addition to Ripple’s regulatory portfolio, which now encompasses over 75 approvals worldwide. It follows closely on the heels of the company’s EMI authorization and crypto registration by the UK’s Financial Conduct Authority (FCA), secured approximately one month prior. Cassie Craddock, Ripple’s Managing Director for the UK and Europe, identified Europe as a “strategic priority,” stating that this approval enhances the firm’s capacity to expand compliant blockchain infrastructure across the continent.

The regulatory milestone for the company contrasts with recent price action for the XRP token. At the time of the announcement, XRP was trading near $1.60, having declined by nearly 24% over the preceding 30-day period.

Treasury Management: Escrow Release and Liquidity

On February 2, Ripple executed its scheduled monthly release of 1 billion XRP tokens from escrow, with a total value of approximately $1.63 billion. The transaction originated from two Ripple-controlled accounts, each unlocking 500 million XRP from escrow contracts established in 2022.

Should investors sell immediately? Or is it worth buying XRP?

A substantial portion of the released tokens—700 million XRP—was immediately placed into new escrow accounts set to mature in December 2026. The remaining 300 million XRP, valued at roughly half a billion dollars, was transferred to Ripple’s liquid treasury account. These funds are typically reserved for potential over-the-counter (OTC) sales and general operational purposes. Given XRP’s circulating supply of about 60 billion tokens, this release represents 1.66% of the active supply.

ETF Flows Signal Investor Caution

Data from SoSoValue indicates that XRP-focused Exchange-Traded Funds (ETFs) experienced net outflows of around $405,000 on February 3. This movement reversed net inflows of $16.79 million recorded the previous Friday. Notably, a significant outflow of $92.92 million occurred on January 29, marking the largest single-day withdrawal since the launch of these investment products. That date also saw the XRP price drop by 9%, coinciding with a broader market correction.

In a related development, Ripple’s RLUSD stablecoin continues to gain traction. According to DeFiLlama, its market capitalization has reached $1.459 billion, reflecting a 33% increase on the XRP Ledger.

Upcoming Community Engagement

RippleX has announced the XRP Community Day 2026, scheduled for February 11 via X Spaces. The free virtual event attracted over 250,000 listeners across three regional sessions in January 2025. With recent corporate developments—including the resolution of the SEC litigation and several acquisitions in 2025—interest in this year’s event is expected to remain high.

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