Japan's Regulators Greenlight a New Era with Ripple's Dollar-Backed Stablecoin Push

Ripple and SBI Holdings have announced a collaboration to introduce Ripple USD (RLUSD) in Japan by early 2026, capitalizing on the country’s growing interest in regulated stablecoins. The stablecoin, fully backed by U.S. dollar deposits and other assets, will be distributed through SBI VC Trade, a licensed Electronic Payment Instruments Exchange Service Provider. This initiative marks Ripple’s first foray into the stablecoin market and aims to set a new standard for institutional-grade compliance and regulatory transparency [1].

The partnership between Ripple and SBI VC Trade reflects the evolving digital finance landscape in Japan. SBI VC Trade will serve as the primary distributor, with plans to launch RLUSD in the first quarter of 2026. SBI VC Trade CEO Tomohiko Kondo emphasized the importance of this collaboration, stating that the introduction of RLUSD would enhance the reliability and convenience of stablecoins in the Japanese market [1]. The company noted that the move aligns with Japan’s broader efforts to modernize its financial infrastructure and attract innovative digital assets.

Ripple’s RLUSD will feature monthly third-party attestations to ensure transparency and trust, a key differentiator from other stablecoins. According to Ripple’s senior vice president of stablecoins, Jack McDonald, the structure of RLUSD positions it as a reliable bridge between traditional and decentralized finance. The stablecoin will be backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents, providing a robust foundation for its value [1]. This approach is expected to appeal to institutional investors seeking stable, regulated digital assets.

Japan’s regulatory environment for stablecoins has been rapidly evolving, particularly since the introduction of a comprehensive framework in June 2023. The country’s Financial Services Agency (FSA) has already approved JPYC, a yen-pegged stablecoin, for issuance later this year. This development underscores the government’s commitment to fostering innovation in digital finance. JPYC, issued by a Tokyo-based fintech firm, will be backed by bank deposits and government bonds and is expected to launch by October [2].

The emergence of yen-backed stablecoins could also have broader implications for Japan’s bond market. JPYC’s representative, Okabe, suggested that widespread adoption of stablecoins could increase demand for Japanese government bonds (JGBs), similar to trends observed in the U.S. market. Countries that fail to develop stablecoin ecosystems may face higher bond interest rates, as they miss out on new sources of institutional demand [3]. This dynamic highlights the strategic importance of stablecoins in shaping monetary policy and financial markets.

The rollout of RLUSD and JPYC signals a broader shift in Japan’s approach to digital finance. With the country’s yen now ranked as the fourth most widely used currency for cross-border payments according to SWIFT statistics, regulated stablecoins are poised to play a significant role in international transactions. As Ripple and SBI continue to collaborate, their efforts will likely influence the pace and direction of Japan’s integration into the global stablecoin ecosystem [2].

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] Japanese stablecoin issuer JPYC receives a license (https://www.ledgerinsights.com/japanese-stablecoin-issuer-jpyc-receives-a-license/)

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