Japan’s Digital Finance Evolution Gets a U.S. Dollar-Backed Boost

Ripple has entered into a partnership with Japan's SBI Holdings to introduce its stablecoin Ripple USD (RLUSD) in the Japanese market, aiming to leverage the country’s evolving digital finance infrastructure and regulatory environment. Under a memorandum of understanding, SBI VC Trade, a subsidiary of SBI Holdings and a licensed Electronic Payment Instruments Exchange Service Provider, will serve as the distributor for RLUSD. The stablecoin is expected to go live in Japan during the first quarter of 2026 [1].

RLUSD is fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents, with monthly third-party audits ensuring transparency and regulatory compliance. Ripple emphasizes that this structure provides a high level of institutional-grade assurance, distinguishing it from other stablecoins. The company views RLUSD as a critical tool in bridging traditional and decentralized finance systems, offering reliability and efficiency in cross-border and domestic transactions [4].

The introduction of RLUSD comes amid Japan’s recent regulatory reforms, including amendments to the Payment Services Act, which took effect in June 2023. These changes allow for the licensing of electronic payment instruments, including stablecoins, under a framework that promotes financial stability and consumer protection. The regulatory environment has been continuously updated, with further amendments planned for 2026, including relaxed reserve requirements and revised licensing tiers [2]. SBI VC Trade was the first in Japan to secure an Electronic Payment Instruments Exchange Service Provider license, positioning itself to handle foreign-issued stablecoins such as RLUSD [3].

SBI VC Trade CEO Tomohiko Kondo highlighted the significance of RLUSD’s introduction, stating that it not only expands stablecoin options for the Japanese market but also enhances the reliability and convenience of digital currency transactions. The partnership reflects SBI’s broader strategy to advance digital finance in Japan, including collaborations with major financial institutions and blockchain firms. These efforts include exploring stablecoin applications in real estate tokenization and security token settlements [3].

Ripple senior vice president of stablecoins, Jack McDonald, emphasized the company’s long-term collaboration with SBI, describing the partnership as foundational to building a compliant and trusted digital financial infrastructure. RLUSD’s institutional branding and reserve transparency are seen as key competitive advantages in the Japanese market, where compliance and stability are prioritized by regulators, banks, and corporations [2]. With a current market circulation of around $667 million and a daily trading volume of approximately $71 million, RLUSD is positioned to gain traction in a market that is expected to see substantial growth in stablecoin adoption [4].

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

[3] SBI to distribute Ripple's RLUSD in Japan as part of ... (https://www.ledgerinsights.com/sbi-to-distribute-ripples-rlusd-in-japan-as-part-of-broader-stablecoin-push/)

[4] Ripple and SBI plan to distribute RLUSD in Japan (https://ripple.com/ripple-press/ripple-and-sbi-plan-to-distribute-rlusd-in-japan/)