"Ripple's RLUSD Targets Japan's Shifting Stablecoin Landscape"

Ripple and SBI Holdings have announced plans to introduce Ripple USD (RLUSD), a stablecoin backed by U.S. dollar deposits and other high-quality assets, in Japan by early 2026. The collaboration, formalized through a memorandum of understanding, will see SBI VC Trade, a licensed Electronic Payment Instruments Exchange Service Provider in Japan, act as the distributor of RLUSD. This initiative is positioned to capitalize on Japan’s evolving stablecoin regulatory environment and its growing appetite for digital financial infrastructure [1].

The stablecoin is designed to operate with full backing by U.S. dollar deposits, short-term government bonds, and cash equivalents, with monthly third-party attestations to ensure transparency and regulatory compliance. Ripple emphasized that this structure differentiates RLUSD from other stablecoins by offering institutional-grade security and reliability, positioning it as a potential industry standard. SBI VC Trade CEO Tomohiko Kondo highlighted that the introduction of RLUSD will not only expand stablecoin options in Japan but also enhance the reliability and convenience of stablecoins in the market [2].

Japan’s regulatory framework for stablecoins has been continuously refined since the 2022 introduction of a licensing regime under the Payment Services Act. Recent amendments, set to take effect in 2026, include relaxed reserve requirements and updated licensing tiers, creating a more favorable environment for foreign stablecoin issuers. SBI VC Trade, which became the first entity in Japan to secure a license for handling foreign-issued stablecoins, is well-positioned to facilitate the RLUSD rollout. The company has already supported the distribution of other stablecoins, including USDC, and is expected to leverage its existing infrastructure to integrate RLUSD into the Japanese financial system [3].

Ripple’s RLUSD was launched in December 2024 and has since seen gradual adoption. As of now, its market capitalization stands at approximately $667 million, with a significant portion of the supply issued on the Ethereum network. The stablecoin has gained traction among institutional investors and was recently used by Bullish crypto exchange to settle a $1.1 billion IPO. Additionally, RLUSD operates under both state and federal oversight in the U.S., including registration with the New York Department of Financial Services, which enhances its credibility and regulatory standing [4].

The partnership between Ripple and SBI reflects a broader trend of institutional and regulatory alignment in the digital finance sector. Both companies have a long-standing relationship in the blockchain and cryptocurrency space in Asia, and this latest initiative underscores their shared vision of advancing financial innovation while maintaining compliance. Ripple’s Senior Vice President of Stablecoins, Jack McDonald, stated that RLUSD is intended to serve as a bridge between traditional and decentralized finance, offering a reliable and efficient medium for cross-border payments and DeFi applications [5].

As Japan moves closer to finalizing its yen-denominated stablecoin framework, the entry of RLUSD is expected to contribute to a more competitive and transparent stablecoin market. The timing of the rollout aligns with broader regulatory developments, including recent approvals of the first yen-pegged stablecoin by Japanese authorities. This environment may encourage further adoption of stablecoins by both retail and institutional users, while also setting a precedent for foreign-issued stablecoins in regulated markets. The success of RLUSD will depend on its ability to meet the high standards of transparency and compliance that Japanese regulators and market participants have come to expect [6].

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

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

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

[5] Ripple and SBI Confirm Launch of RLUSD in Japan (https://thecryptobasic.com/2025/08/22/ripple-and-sbi-confirm-launch-of-rlusd-in-japan/)

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

[7] Ripple, SBI Plan RLUSD Stablecoin Distribution in Japan by ... (https://finance.yahoo.com/news/ripple-sbi-plan-rlusd-stablecoin-042231203.html)