- Ripple‘s RLUSD stablecoin launched as Japan‘s first “Type 4 electronic payment instrument.”
- The approved version operates exclusively on the Ethereum blockchain, not Ripple‘s own XRP Ledger.
- SBI VC Trade, a crypto arm of an $11 billion financial giant, is handling the listing.
- Transactions are capped at approximately $6,200 each, equivalent to 1 million yen.
Ripple achieved a major regulatory milestone in Japan this week, but ironically required its competitor’s blockchain to do so. On June 24, SBI VC Trade listed Ripple’s dollar-pegged stablecoin, RLUSD, heralding it as the country’s first “Type 4 electronic payment instrument” according to an announcement. However, the only RLUSD tokens approved for deposit or withdrawal by Japanese traders are on the Ethereum blockchain, the primary competitor to Ripple‘s XRP Ledger.
Consequently, this initial approval is unambiguous and exclusive to the Ethereum version. Regulators could approve additional blockchains in the future, but no timeline has been specified. The classification stems from Japan’s 2023 amendments to its Payment Services Act, which created a dedicated bucket for fiat-pegged stablecoins.
Meanwhile, Type 4 is a residual, catch-all slot for property value designated as equivalent to other payment instruments. SBI VC Trade noted that RLUSD is not a trust beneficiary right under US law, yet it gained Type 4 classification after establishing its financial equivalency to the USD. This makes RLUSD the second dollar stablecoin on the platform, joining Circle’s USDC, which is a Type 3 instrument.
Despite the blockchain irony, XRP influencers framed the event as a win. Ripple’s senior vice president for stablecoins, Jack McDonald, praised Japan’s regulatory clarity. One social media user highlighted the fine print, posting that RLUSD is live “on Ethereum ONLY.”
This listing reflects a broader trend, as most RLUSD tokens already exist outside of the XRPL. Data shows Ethereum held around $879 million of the token recently, compared to roughly $760 million on the XRP Ledger. For a Japanese exchange, Ethereum-based RLUSD offered the quickest path to approval and deeper global liquidity.
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