Ripple Takes on Circle in Japan’s Growing Stablecoin Market with RLUSD Launch

TLDR

• Ripple and SBI Holdings signed a memorandum of understanding to distribute RLUSD stablecoin in Japan by Q1 2026
• SBI VC Trade will serve as the distributor under Japan’s new Electronic Payment Instruments Exchange Service Provider license
• RLUSD has a current market cap of $667 million and is fully backed by U.S. dollar deposits and short-term Treasuries
• Japan’s Payment Services Act amendments created new licensing rules for foreign stablecoin issuers starting in 2023
• The launch follows Circle’s USDC approval in March, making it the second major U.S. dollar stablecoin approved in Japan

Ripple and SBI Holdings announced plans to bring the RLUSD stablecoin to Japan by the first quarter of 2026. The partnership was formalized through a memorandum of understanding signed on Friday.

SBI VC Trade will handle distribution of RLUSD in Japan under its Electronic Payment Instruments Exchange Service Provider license. The company became the first firm in Japan to secure this license, which allows handling of foreign-issued stablecoins.

RLUSD launched in December 2024 as Ripple’s first stablecoin product. The token maintains full backing through U.S. dollar deposits, short-term Treasury securities, and cash equivalents.

Monthly attestations from third-party firms verify RLUSD’s reserves. Ripple issues the stablecoin under a New York State trust-company charter for regulatory compliance.

Current market data shows RLUSD has a circulation of approximately $667 million. Daily trading volume averages around $71 million according to CoinGecko data.

Japan’s stablecoin market opened to foreign issuers following Payment Services Act amendments that took effect in June 2023. The original framework passed through Japanese parliament in 2022.

Regulatory Framework Changes

The new licensing regime requires specific authorization for electronic payment instruments. Only licensed entities like fund transfer service providers or trust banks can issue or distribute fiat-pegged stablecoins.

Additional amendments scheduled for implementation by 2026 will introduce relaxed reserve requirements. Updated licensing tiers will also take effect under the revised framework.

SBI VC Trade CEO Tomohiko Kondo said RLUSD will expand stablecoin options in the Japanese market. The distribution aims to improve reliability and convenience for users.

Ripple senior vice president of stablecoins Jack McDonald described RLUSD as designed for industry standard compliance. The company positions the token as a bridge between traditional and decentralized finance systems.

Market Context

Circle received approval for USDC distribution in Japan in March 2025, becoming the first U.S. dollar-pegged stablecoin authorized in the country. Tether’s USDT has not received similar regulatory approval for the Japanese market.

Tokyo-based analyst Rick Maeda from Presto Research noted Japan’s structured approach to crypto regulation. The Payment Services Act creates a bank-friendly framework that appeals to institutional participants.

Japanese regulators, banks, and corporations prioritize compliance in their evaluation of crypto products. This regulatory environment favors stablecoins with institutional branding and transparent reserve structures.

The partnership builds on existing collaboration between Ripple and SBI in Asia’s blockchain sector. Both companies have worked together on various blockchain initiatives across the region.

RLUSD distribution in Japan represents the latest expansion of Ripple’s stablecoin operations. The launch will test demand for U.S. dollar-backed digital assets in Japan’s regulated crypto market through SBI VC Trade’s licensed platform.

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