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Ripple has secured Crypto-Asset Service Provider (CASP) authorisation under the European Union's Markets in Crypto-Assets Regulation, putting it among a small group of issuers cleared to serve EU customers under the bloc's new harmonised crypto framework. The approval lands as the industry digests a very different choice from the sector's largest stablecoin player: Tether.
Why it matters
Tether CEO Paolo Ardoino said on July 1 that Tether did not apply for a MiCA licence because, in his view, the regime is "very dangerous when it comes to stablecoins." His specific objection: the rules could push issuers to park up to 60% of reserves in uninsured cash deposits at EU credit institutions. Ripple, by contrast, has met the bar. The split is now visible to every European issuer weighing the same trade-off, and the two tracks are not equal.
Market impact
MiCA's stablecoin rules require issuers operating in the EU to hold substantial reserves in low-risk, liquid EU-based assets, with strict disclosure and supervision. Tether's decision removes its USDT from compliant EU venues, while Ripple's XRP and RLUSD stablecoin gain direct access to the bloc's regulated market. The structural result is a two-tier European crypto market: a small group of fully licensed issuers, and a much larger pool of offshore tokens accessible only through unregulated routes.
Frequently asked questions
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What is a MiCA CASP authorisation?
A CASP, or Crypto-Asset Service Provider, is a licence introduced under the EU's Markets in Crypto-Assets Regulation. Firms that hold one can offer crypto trading, custody, and advisory services across all EU member states under a single harmonised regime.
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Why did Tether refuse to apply for a MiCA licence?
Tether CEO Paolo Ardoino said on July 1 that the company did not apply because MiCA's stablecoin rules are "very dangerous." He specifically warned the framework could require issuers to park up to 60% of reserves in uninsured cash deposits at EU credit institutions.
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What is RLUSD?
RLUSD is Ripple's US dollar-pegged stablecoin. Following Ripple's CASP approval, RLUSD can be distributed through fully MiCA-compliant venues inside the European Union.
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How does MiCA treat stablecoin reserves?
MiCA requires stablecoin issuers operating in the EU to hold substantial reserves in low-risk, liquid assets, largely at EU-based credit institutions, with strict disclosure and ongoing supervision by national regulators.
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What happens to USDT in the EU under MiCA?
With Tether not pursuing a MiCA licence, USDT is no longer accessible through fully compliant EU venues. EU-licensed exchanges and wallets have delisted or restricted USDT trading pairs in line with the new rules.
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