Ripple’s European subsidiary, Ripple Payments Europe S.A., has commenced operations following the activation of its Legal Entity Identifier (LEI) in Luxembourg.

Issued on 21 April 2025, the LEI identifier is currently marked as active and compliant. The next renewal is scheduled for April 2026.

This legal presence signifies a significant step in Ripple’s strategic push to integrate its operations within Europe’s regulated financial landscape. It also precedes the company’s application for an Electronic Money Institution (EMI) license in Luxembourg, which is necessary for operation under the forthcoming Markets in Crypto-Assets (MiCA) regulatory framework.

Ripple officials have indicated that if granted the EMI license, the firm will fully comply with MiCA. This legislation is expected to form the cornerstone of crypto-assets regulation across the European Economic Area (EEA). With such a license, Ripple would gain the capability to issue digital assets, including its planned RLUSD stablecoin, and provide regulated payment services in all 30 EEA countries.

Ripple’s Focus on EU Payments Infrastructure

Ripple’s Luxembourg registration is part of the broader strategy by fintech and crypto firms to establish a presence in jurisdictions that offer regulatory clarity and proximity to Europe’s financial institutions. Luxembourg stands out as an attractive base due to its ability to meet MiCA requirements, such as reserve management rules for stablecoin issuers. These include holding 30% to 60% of reserves in bank deposits and diversifying risk across multiple banking institutions.

As part of its preparations, Ripple has appointed BNY as the custodian of the USD reserves backing RLUSD. This institutional arrangement is designed to meet regulatory standards for asset safeguarding.

Over the past year, Ripple has expanded its European footprint through operational and personnel changes. The company continues to support payment corridors in markets such as the United Kingdom and Portugal, offering services involving the euro, British pound, and XRP.

While the LEI registration itself does not grant regulatory authorization, it is essential for ensuring traceability and compliance in cross-border financial operations. This move supports Ripple’s ambition to become a regulated participant within the EU’s single market and aligns with its long-term plan to integrate into the bloc’s digital finance ecosystem.