Categories: Ripple

Ripple Targets European Market as RLUSD Emerges as MiCA-Compliant USDT Rival

Usable on both the XRP Ledger and Ethereum, RLUSD offers seamless connectivity and is emerging as a strong contender to fill the void left by USDT in the European market.
Ripple’s focus on building partnerships in Asia and other regions has positioned the company to capitalize on regulatory shifts.

Europe’s crypto space has witnessed a shift after Tether removed USDT from leading exchanges due to the strict new MiCA regulations. Now that people are suddenly paying attention, Ripple’s RLUSD looks set to take the lead.

Ripple’s RLUSD Seizes The Limelight Amid EU’s MiCA Rules

New EU regulations meant for crypto-assets under MiCA have caused stablecoin USDT to leave exchanges that operate in Europe. The rules forbid interest on stablecoins, command that 60% of reserves be in cash, control the amount of daily stablecoin issuance and redemption, and require conformity with EU-regulated banks.

Jake Claver, a crypto analyst, remarked on X, “Tether took one look and said, ‘we’re out.’” He added that the company chose not to “restructure a $150 billion operation just to stay in one region.” This exit has disrupted liquidity across countless trading pairs on European platforms.

He went on, “Without it, trading becomes scattered, liquidity thins out, and users start migrating to less-regulated platforms outside the EU.” While MiCA-approved USDC and EURC are at the heart of what Circle hopes to do, they have not reached the level of use that Tether achieved before.

“USDC is compliant but small. Tether is massive but non-compliant. Ripple’s RLUSD brings the best of both worlds,” Claver noted. Launched in December 2024, RLUSD is designed to meet MiCA standards from day one. It is usable on the XRP Ledger and Ethereum, allowing for simplicity and broad connectivity, as highlighted in our previous report.

Ripple’s Focus On Building Relations Outside The U.S.

Importantly, Ripple’s focus on overseas investments, especially in Asia, allowed it to identify and use chances created by changes in regulations. The company has thus formed valuable links with partners in other parts of the world.

“Ripple built strong connections in other regions. So when EU regulations changed the game, Ripple was already in position,” Claver observed. This approach may now be working out in their favor. Ripple-Liquidity USD can already be purchased by European traders on Bitstamp.

In contrast, Circle’s regulatory compliance has yet to translate into the scale necessary to replace USDT. Claver emphasized that “all euro-denominated stablecoins combined barely reach ~$250 million,” while USDT’s dominance continues globally.

Some market participants believe the disruption could have far-reaching effects. A user responded to Claver’s analysis, “How does Tether not being MiCA compliant and not being compliant with the Genius Act affect Bitcoin? Will this be the reason that causes or exacerbates one of those dominoes to fall, which will cause $XRP to skyrocket before the end of the year?”

However, Claver is yet to respond to this set of queries. Meanwhile, analysts remain optimistic on an imminent XRP price surge. Paul Barron, CEO and host at Paul Barron Network, noted that with Bitcoin price hitting a new all-time high of $111,000, XRP price could also follow suit with a target of $4 in the short-term.