Key Takeaways
- Ripple CLO Stuart Alderoty announced plans for expansion in Luxembourg and Europe.
- This comes after a meeting between Ripple’s leaders and Luxembourg Finance Minister Gilles Roth.
- Further, the country recently also revealed that it will be allotting 1% of its FSIL to Bitcoin ETFs.
Ripple, the company behind XRP, is eyeing a major expansion. CLO Stuart Alderoty, affirmed that the firm is looking to advance its activities in Luxembourg as it continues with its overall strategy of expanding into Europe. The assertion came after a conference between the Ripple leaders and Luxembourg Finance Minister Gilles Roth, who said he was highly supportive of the country’s role in promoting digital finance.
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Ripple Eyes Luxembourg Expansion Amid Pro-Crypto Policies
FM Roth posted on X that he had a “great meeting with Ripple” as the company pursues a license to do business in Luxembourg. He also claimed that the conversation had been about the European ambitions of the company, Ripple, and that Luxembourg had made a “commitment to digital innovation.”
In reply to Roth’s message, Alderoty commended the European Union on the regulation of digital assets. “The EU led in creating comprehensive rules for digital assets and nations like Luxembourg are leaning in,” he wrote in a post on X. He added, “Thanks to Luxembourg Finance Minister Gilles Roth and his team for a great meeting last week. Ripple is excited about our future in Luxembourg and the EU.”
The meeting is a timely event in the history of the Luxembourg financial sector that has just made a historic move in investing in digital assets. The Intergenerational Sovereign Wealth Fund (FSIL) of the country has invested 1 percent of its holdings in Bitcoin exchange-traded funds (ETFs) and is now one of the first state-backed investment funds across Europe to invest in the asset class.
The allocation was unveiled by Luxembourg Treasury Director and Secretary General Bob Kieffer in a LinkedIn post, as disclosed by the Finance Minister Roth in his delivery of the 2026 national budget. According to Kieffer, the relocation signifies that the country recognizes the “growing maturity of this new asset class” and the move affirms the leadership position of Luxembourg in digital finance.
What’s Happening in Luxembourg’s Digital Asset Space?
By June 30, FSIL controlled approximately €764 million (approximately $888 million), so its Bitcoin ETF stake is about $9 million. The investment is done on a modified policy passed by the government in July 2025, permitting the fund to diversify 15% of its portfolio in non-correlated assets like cryptocurrencies, real estate, and private equity.
Although Luxembourg designated crypto firms as “high-risk” for money laundering in its 2025 risk analysis, the latest government framework indicates a less adversarial approach to the matter, which is neither overly innovative nor overly regulatory. Kieffer said that the rationale behind investing in either ETFs to access Bitcoin versus owning it was “to avoid operational risks.”
Kieffer referred to the fund’s policy update as “significant evolution” that reflects both institutional maturity and alignment with Luxembourg’s long-term economic and social objectives. He admitted that the degree of the investment might be discussed differently but justified the method as quantified.
“Given the FSIL’s particular profile and mission, the fund’s management board concluded that a 1% allocation strikes the right balance while sending a clear message about Bitcoin’s long-term potential,” he wrote.
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