XRP’s Dual Milestone: Regulatory Green Light Meets Core Protocol Upgrade

While the broader cryptocurrency market faces significant selling pressure, XRP’s underlying ecosystem is marking two substantial developments. These events, one regulatory and one technical, are designed to bolster the digital asset’s infrastructure for future institutional adoption, even as its short-term price action tells a different story.

Ripple Secures Full European Electronic Money License

Earlier this week, on Monday, February 2, 2026, Ripple announced it had received full approval as an Electronic Money Institution (EMI) from Luxembourg’s financial regulator, the CSSF. This follows a provisional green light granted in January. The company confirmed that all necessary conditions have now been satisfied.

This complete EMI status is a strategic achievement, granting Ripple passporting rights to operate its “Ripple Payments” solutions across all 27 member states of the European Union. The company also highlighted progress in the United Kingdom, where it secured both an EMI license and a Cryptoasset registration with the Financial Conduct Authority (FCA) in January 2026. In total, Ripple states it now holds more than 75 licenses and approvals globally. Cassie Craddock, Ripple’s European managing director, described the EU authorization as a “transformative milestone” for their operations.

XRP Ledger Activates Permissioned Domains Feature

In a separate but concurrent development, the XRP Ledger (XRPL) activated a major protocol upgrade on February 4, 2026. The Permissioned Domains amendment (XLS-80) went live after receiving support from over 91% of the network’s validators.

This technical enhancement introduces a restricted-access layer on top of the public XRPL, where participation can be governed by specific credentials. It is crucial to understand that this update does not immediately create new end-user applications. Instead, it lays a foundational framework upon which future extensions can be built—such as potential regulated versions of decentralized exchanges (DEX).

From a technical perspective, the upgrade adds new components to the ledger, including a PermissionedDomain object and management transactions like PermissionedDomainSet and PermissionedDomainDelete. Operators of these domains can define rules regarding which credentials are accepted. Accounts presenting valid credentials are then automatically granted membership.

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The practical utility addresses a long-standing industry challenge: Financial institutions seek to leverage blockchain advantages but are bound by strict compliance requirements. Until now, this often led to separate, isolated solutions. The new model aims to enable “compliant zones” on a shared, public infrastructure.

Market Context Overshadows Developments

Despite these positive structural announcements, XRP’s market performance remains under strain. The asset has declined by double-digit percentages over the past week, caught in a broader cryptocurrency sell-off. As of today, the coin is trading at $1.55, which also represents its 52-week low. The Relative Strength Index (RSI) sits at 28.8, underscoring the recent bearish momentum.

Adding to the market’s sensitivity, the scheduled monthly release of 1 billion XRP from escrow occurred on February 2, according to data from XRPScan. While this is a routine part of Ripple’s established token distribution plan, such releases tend to attract more attention during periods of market nervousness.

Key Facts at a Glance:
– XLS-80 Live (Feb 4): Credential-based access layers implemented with >91% validator approval.
– Full EU-EMI License (Feb 2): Granted by Luxembourg’s CSSF, enabling EU-wide passporting.
– Scheduled Escrow Release (Feb 2): 1 billion XRP unlocked as per the standard plan.

Background activity also continues around Ripple’s stablecoin initiative. Data indicates growth for RLUSD, including a notable single-day increase in its presence on the XRP Ledger.

The Strategic Perspective

The critical takeaway is that Permissioned Domains represent a long-term infrastructure play rather than an immediate price catalyst. The amendment does not alter XRP’s supply dynamics or fee structure, nor does it automatically generate new demand. However, when combined with the comprehensive EU licensing victory, it significantly improves the groundwork for institutional adoption over a medium-term horizon. The market’s immediate reaction, however, offers no guarantee of reflecting this strengthened foundational position.