Ripple's RLUSD to Bridge Japan's High-Cost Cross-Border Payments

Ripple and SBI Holdings are set to introduce Ripple USD (RLUSD), a U.S. dollar-pegged stablecoin, in Japan by early 2026, according to multiple reports. The initiative is part of a broader regulatory shift in Japan, where new stablecoin legislation, beginning in 2022, has allowed for the regulated entry of foreign-issued stablecoins. SBI VC Trade, a licensed Electronic Payment Instruments Exchange Service Provider under the SBI Holdings umbrella, has signed a memorandum of understanding with Ripple to distribute RLUSD within the Japanese market. This partnership marks a significant expansion for Ripple in Asia, leveraging SBI’s regulatory expertise and extensive institutional reach.

The RLUSD stablecoin, launched in December 2024, is fully backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents, with monthly third-party attestations ensuring transparency. This structure aligns with the heightened compliance standards observed in Japan’s financial ecosystem, a market that prioritizes institutional-grade stablecoins. SBI VC Trade CEO Tomohiko Kondo highlighted that the introduction of RLUSD not only expands stablecoin options for Japanese users but also enhances the reliability and convenience of such digital assets in the country’s evolving financial infrastructure.

Japan’s Payment Services Act amendments, which took effect in June 2023, have created a licensing regime for electronic payment instruments, making the country more accessible to international stablecoin providers. The framework is set to undergo further revisions by 2026, including relaxed reserve requirements and updated licensing tiers. Ripple’s entry into Japan is seen as a strategic move to capitalize on these regulatory developments, particularly in a market where cross-border payment fees are among the highest globally. Ripple’s On-Demand Liquidity (ODL) service is already operational in Japan, enabling XRP-based remittances and reducing pre-funding requirements for cross-border transfers.

Analysts note that Japan’s regulatory environment is particularly favorable for crypto projects, with its continuously updated Payment Services Act fostering a structured and bank-friendly ecosystem. According to Rick Maeda, a Tokyo-based analyst at Presto Research, Ripple benefits from both the regulatory clarity and SBI’s institutional reach. The stablecoin’s institutional branding and reserve transparency are likely to give it an edge over less-compliant competitors in the market.

In parallel, Japan is also preparing to launch its first yen-pegged stablecoin, JPYC, developed by a local startup and backed by Japanese government bonds. The Financial Services Agency (FSA) is expected to approve this token in the coming months, following a licensing review process. While JPYC represents a domestic stablecoin initiative, RLUSD’s arrival underscores the global interest in Japan’s stablecoin market and the country’s potential to become a regional hub for digital finance.

As RLUSD enters the Japanese market, it is expected to play a pivotal role in enhancing the efficiency of cross-border payments and institutional transactions. Ripple’s senior vice president of stablecoins, Jack McDonald, emphasized that the asset is designed to serve as a bridge between traditional and decentralized finance, providing a reliable and efficient tool for institutional use. The rollout aligns with broader global trends, as stablecoins continue to evolve as essential components of the digital financial infrastructure. With regulatory clarity and institutional adoption on the rise, the Japanese market is positioning itself as a critical player in the next phase of stablecoin innovation.

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] 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)

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

[5] Ripple's RLUSD stablecoin to enter Japanese market ... (https://cryptoslate.com/ripples-rlusd-stablecoin-to-enter-japanese-market-by-2026/)

[6] 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/)

[7] Stablecoin News: Japan's Regulator to Approve First Yen- ... (https://www.coindesk.com/policy/2025/08/18/japan-s-financial-regulator-to-approve-first-yen-denominated-stablecoin-report)