- Japan’s revised Payment Services Act requires licenses for issuing and distributing fiat-backed stablecoins.
- Ripple and SBI Holdings will launch the RLUSD stablecoin in Japan by early next year through SBI VC Trade.
- SBI VC Trade is Japan’s first licensed Electronic Payment Instruments Exchange Service Provider, already handling USDC and soon adding RLUSD.
- Japan’s crypto regulations focus on compliance and enable both local and foreign stablecoin offerings through tight oversight.
- RLUSD is fully backed by cash and equivalents, with regular reserve reports and a market cap of around $667 million.
Ripple and SBI Holdings plan to release the RLUSD stablecoin in Japan by early next year. The rollout is timed with recent changes to Japan’s laws that created a clear framework for electronic money, making it possible for foreign stablecoin issuers to enter the market.
The companies formalized the plan under a memorandum of understanding. The stablecoin will be listed on SBI VC Trade, a crypto exchange holding a license to distribute electronic payment instruments. Earlier this year, SBI VC Trade became the first Japanese platform with this license, allowing it to host stablecoins like USDC and now RLUSD.
SBI VC Trade’s CEO, Tomohiko Kondo, stated that “Ripple’s entry would help step up the reliability and convenience of stablecoins in the Japanese market.” According to Ripple, RLUSD is fully backed by cash, short-term U.S. Treasury bills, and similar assets, with monthly reports verifying its reserves. RLUSD’s current market value is around $667 million, trading roughly $71 million daily, based on CoinGecko data.
Japan’s updated Payment Services Act took effect in June 2023, laying out new requirements for stablecoin issuers. Only licensed entities like fund transfer providers or trust banks can issue or distribute stablecoins pegged to the dollar or other fiat currencies. Additional updates to these rules are due by 2026, further adjusting reserve and licensing requirements, according to the Asia Business Law Journal report.
Rick Maeda of Presto Research told Decrypt that Japan’s system is considered “very structured and bank-friendly.” He added, “Ripple leverages this regulatory moat as well as SBI’s deep retail and institutional reach.” RLUSD’s institutional branding and reserve transparency may help it compete in a market that prioritizes strict compliance.
Circle’s USDC stablecoin was recently approved in Japan, but other major stablecoins like Tether’s USDT have not received approval. RLUSD operates under a New York trust-company charter, offering monthly reserve attestations for greater transparency.
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