Ripple and SBI Holdings have announced plans to launch Ripple USD (RLUSD), a U.S. dollar-pegged stablecoin, in Japan by early 2026. This move aligns with Japan’s evolving regulatory framework for stablecoins, which was formalized through amendments to the Payment Services Act in June 2023. The updated framework requires stablecoin issuers to be licensed entities such as fund transfer service providers or trust banks, a regime that has now enabled foreign-backed stablecoins like RLUSD to enter the Japanese market [1].
Ripple and SBI signed a memorandum of understanding (MOU) under which SBI VC Trade, a subsidiary of SBI Holdings and the first licensed Electronic Payment Instruments Exchange Service Provider in Japan, will distribute RLUSD. SBI VC Trade CEO Tomohiko Kondo emphasized that the initiative marks a significant step in expanding stablecoin options in Japan while improving their reliability and convenience [2]. Ripple’s RLUSD is backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents, with monthly third-party reserve attestations ensuring transparency. This structure is designed to meet Japan’s stringent regulatory standards and aligns with the country’s emphasis on institutional compliance and stability in digital finance [1].
Japan’s stablecoin market is growing, supported by a regulatory environment that encourages innovation while maintaining financial integrity. The FSA has been reviewing proposals for yen-pegged stablecoins to facilitate cross-border payments and DeFi applications, reflecting broader interest in digital asset integration. RLUSD’s launch is expected to complement Ripple’s existing On-Demand Liquidity (ODL) service in Japan, which has been operational since earlier this year. ODL allows XRP to be used as a liquidity bridge for cross-border remittances, particularly in corridors where traditional fees are high [2]. This dual-layered ecosystem—where XRP powers liquidity and RLUSD offers stable value—could position Ripple as a key player in Japan’s digital finance infrastructure [2].
The stablecoin’s expansion into Japan follows a period of strong institutional adoption. As of recent data, RLUSD has a market capitalization of approximately $667 million, with a significant portion issued on Ethereum and a portion on the XRP Ledger. Ripple has also registered RLUSD with the New York Department of Financial Services, making it one of the first digital assets in the U.S. to operate under both state and federal oversight. This regulatory clarity is expected to enhance its appeal to institutional investors and financial firms in Japan [1].
Analysts have noted that Ripple’s collaboration with SBI leverages the latter’s extensive institutional reach and deep understanding of Japan’s financial landscape. Rick Maeda, a Tokyo-based analyst at Presto Research, highlighted that RLUSD’s institutional branding and reserve transparency could give it a competitive edge in a market where compliance and trust are prioritized. He also noted that Japan’s Payment Services Act has continuously evolved since 2022, with future amendments expected by 2026 to further refine reserve requirements and licensing structures [1]. This ongoing regulatory development creates a favorable environment for stablecoin innovation, including cross-border payment solutions and institutional-grade digital assets.
In parallel, Japan has seen the emergence of other regulated stablecoin initiatives. JPYC, a local startup, recently received Japan’s first funds transfer service provider license, enabling it to issue a yen-pegged stablecoin backed by domestic savings and Japanese government bonds. This development underscores the country’s broader commitment to integrating stablecoins into its financial infrastructure. With Ripple’s RLUSD poised to enter the market alongside domestic offerings like JPYC, Japan is reinforcing its position as a hub for digital asset innovation and regulation [3].
Source:
[1] Ripple and SBI to Launch RLUSD Stablecoin in Japan by … (https://finance.yahoo.com/news/ripple-sbi-launch-rlusd-stablecoin-055619508.html)
[2] Latest RLUSD Stablecoin Could Propel Ripple To … (https://bitcoinist.com/latest-rlusd-to-propel-ripple/)
[3] Japanese stablecoin issuer JPYC receives a license (https://www.ledgerinsights.com/japanese-stablecoin-issuer-jpyc-receives-a-license/)
AloJapan.com