While XRP trades near its lowest level in a year, its parent company has achieved a significant regulatory milestone in Europe. Ripple Labs has obtained a full Electronic Money Institution (EMI) license from Luxembourg’s financial regulator, the CSSF, granting it passporting rights to offer services across all 27 member states of the European Union.
A Strategic Gateway to the European Market
This full authorization, following preliminary approval in January, represents a critical expansion of Ripple’s regulated operations. The passporting regime eliminates the need for country-by-country approvals, allowing the firm to provide its payment services seamlessly throughout the EU. This move is central to Ripple’s strategy of serving institutional clients within Europe’s financial sector. The company now holds more than 75 licenses globally, including key registrations with the UK’s Financial Conduct Authority (FCA).
Token Dynamics and Stablecoin Momentum
In related company developments, Ripple executed its scheduled monthly token unlock on February 2. While one billion XRP was initially released from escrow, on-chain data reveals a nuanced picture: 700 million of those tokens were immediately placed into new escrow contracts extending through 2026. Only 300 million XRP entered the company’s liquid holdings, representing approximately 0.5% of the circulating supply, to cover potential operational expenses or sales.
Concurrently, Ripple’s proprietary stablecoin, RLUSD, is gaining traction. Its market capitalization reached roughly $1.46 billion by February 3. The asset is poised for broader adoption, with major exchange Binance announcing plans for integration, a move expected to significantly boost its liquidity and utility.
Should investors sell immediately? Or is it worth buying XRP?
Institutional Sentiment Defies Market Price Action
The current market price of XRP, at $1.58, aligns with its 52-week low, having declined around 17% over the past week. However, activity behind the scenes tells a contrasting story. U.S.-listed XRP ETFs recorded net inflows of nearly $92 million in January, a positive trend that stood in sharp relief to the outflows seen in Bitcoin ETFs during the same period.
Furthermore, data suggests large-scale investors are using the price weakness as an accumulation opportunity. The number of wallets holding at least one million XRP increased in January, marking the first monthly rise in several months. This accumulation by major holders indicates that institutional players may be valuing the long-term potential of Ripple’s European expansion over the current bearish price sentiment.
The key question for Ripple’s future is how effectively it can translate this new EU-wide regulatory clearance into tangible banking partnerships and increased transaction volume.
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