Ripple has achieved a significant regulatory milestone within the European Union. On February 2, 2026, the company was granted a full Electronic Money Institution (EMI) license by Luxembourg’s financial regulator, the CSSF. This authorization provides Ripple with “passporting rights,” enabling it to offer regulated digital payment services across all 27 EU member states without needing separate national approvals. For the XRP ecosystem, this development represents a crucial advance toward broader institutional adoption.
A Strategic Position in European Finance
The newly acquired license allows Ripple to issue electronic money and process digital payments under a well-defined legal framework. Cassie Craddock, Ripple’s Managing Director for the UK and Europe, described the achievement as a “transformative milestone” that positions the firm at the heart of Europe’s financial infrastructure. The move is designed to simplify the transition to digital payment systems for businesses throughout the region.
This European approval forms part of Ripple’s wider global licensing strategy, adding to its existing portfolio of over 75 regulatory licenses worldwide. By removing major compliance obstacles, it paves the way for European banks and fintech companies to more readily integrate Ripple’s payment infrastructure.
Concurrent Technical Upgrades on the XRP Ledger
Alongside these regulatory advances, the underlying XRP Ledger (XRPL) is undergoing its own enhancements. Since January 28, 2026, network validators have been voting on a proposed native lending protocol, known as Amendment XLS-66d. This upgrade aims to attract institutional capital directly onto the blockchain through structured credit instruments.
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Another important technical feature is nearing activation. The “Token Escrow” function is in its final two-week activation phase. If sufficient consensus is reached, it could go live on February 12, 2026. This capability would allow any token on the XRPL—including stablecoins and tokenized real-world assets—to be placed into secure, time-locked escrow.
Market Response and Broader Context
Despite the positive regulatory news, the price of XRP has continued to trade within a consolidation pattern. Analysts note that while the license strengthens XRP’s utility for cross-border settlements and may boost long-term institutional demand, broader market sentiment remains closely tied to macroeconomic factors and overall cryptocurrency sector trends.
On-chain data presents a nuanced picture. Activity on decentralized exchanges within the XRP network hit a 13-month high in late January, even as the number of active addresses has recently declined.
The EU license marks progress at the intersection of digital asset technology and regulation. Market participants are also monitoring legislative developments in the United States, where the proposed CLARITY Act seeks to establish clearer regulatory guidelines for digital assets.
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