Japan's Digital Finance Gets a New Dollar-Backed Pillar

Ripple and SBI Holdings are preparing to launch Ripple USD (RLUSD) in Japan by early 2026, marking a significant development in the country’s growing stablecoin landscape. The initiative, formalized under a memorandum of understanding, will see SBI VC Trade, a licensed Electronic Payment Instruments Exchange Service Provider, serve as the distributor for RLUSD in Japan. The move aligns with the country's evolving regulatory framework, which has been progressively refining its approach to stablecoin issuance and distribution since the amendment of the Payment Services Act in 2023 [1].

RLUSD, Ripple’s first stablecoin, is fully backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents, with monthly third-party attestations ensuring transparency. Ripple highlights this structure as a key differentiator, offering regulatory clarity and institutional-grade compliance that aligns with the preferences of Japanese regulators, banks, and corporations [1]. The token has seen an average daily trading volume of approximately $71 million and a total market circulation of around $667 million, according to CoinGecko [3].

SBI VC Trade CEO Tomohiko Kondo emphasized that the introduction of RLUSD would enhance the reliability and convenience of stablecoins in Japan, expanding the range of options available to market participants [1]. The partnership underscores the deepening collaboration between Ripple and SBI, which has a long-standing presence in Asia’s blockchain ecosystem. SBI previously secured the first approval for a U.S. dollar-pegged stablecoin in Japan, USDC, in March 2025, through its joint venture with Circle [3].

The timing of the RLUSD launch also coincides with Japan’s broader regulatory advancements in digital finance. The country’s Financial Services Agency (FSA) is expected to approve JPYC, the first yen-pegged stablecoin, later in 2025. JPYC, developed by a Tokyo-based fintech firm, is backed by Japanese government bonds and domestic savings, with plans to issue the stablecoin through digital wallets [4]. The introduction of both RLUSD and JPYC represents a shift in Japan’s approach to digital currency, which has historically been cautious but is now embracing innovation within a structured legal framework [3].

Industry analysts suggest that the rollout of RLUSD reflects Ripple’s strategic positioning in the Asian market, leveraging SBI’s extensive institutional and retail networks to drive adoption. The stablecoin’s institutional branding and reserve transparency could provide it with a competitive edge in Japan’s market, where compliance is a top priority [3]. Meanwhile, the growing interest in stablecoins—both foreign and domestic—signals a broader trend in Japan’s financial sector, where traditional players and fintech startups are increasingly exploring digital assets to enhance liquidity and efficiency [4].

The entry of RLUSD into Japan’s stablecoin market is expected to contribute to the country’s digital finance infrastructure, offering users a regulated and transparent alternative to existing stablecoins. With Japan’s regulatory framework continuously evolving, the launch of RLUSD and the anticipated approval of JPYC highlight the country’s commitment to integrating digital currencies into its broader financial system [1].

Source:

[1] Ripple News: RLUSD Stablecoin to be Distributed in Japan ... (https://www.coindesk.com/markets/2025/08/22/ripple-sbi-plan-rlusd-stablecoin-distribution-in-japan-by-2026)

[2] SBI Forms New Ties With Circle, Ripple And Startale (https://cointelegraph.com/news/sbi-japan-blockchain-partnership-circle-ripple-startale)

[3] Ripple and SBI to Launch RLUSD Stablecoin in Japan by ... (https://finance.yahoo.com/news/ripple-sbi-launch-rlusd-stablecoin-055619508.html)

[4] Japan startup to issue first yen-pegged stablecoin (https://www.reuters.com/sustainability/boards-policy-regulation/japan-startup-issue-first-yen-pegged-stablecoin-2025-08-19/)

[5] Japan to Approve First Yen-Backed Stablecoin This Fall (https://cointelegraph.com/news/japan-approves-first-yen-stablecoin-jpyc)