RLUSD Becomes Japan’s First Foreign-Issued Stablecoin

Key Takeaways:

• Ripple and SBI are officially launching the new enterprise in Japan with JFSA approval.
• RLUSD becomes Japan’s first foreign-issued stablecoin classified as a Type 4 electronic payment instrument.
• The launch will wholly enhance SBI VC’s retail and institutional customers’ access to regulated stablecoin offering.

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    Follow us on Google NewsRipple officially launches its dollar-backed stablecoin RLUSD in Japan, one of the biggest steps it has taken in the Asian digital asset market that is under strict regulatory oversight. The launch follows the approval by the Financial Services Agency (FSA) of Japan, and presents retail and institutional users with RLUSD via SBI VC Trade.

Table of Contents

• RLUSD Officially Enters Japan
• SBI and Ripple Expand Their Long Partnership
  • RLUSD Backed by Regulated Reserve Assets
  • Japan Strengthens Its Regulated Stablecoin Market

RLUSD Officially Enters Japan

Ripple and SBI Group announced that RLUSD is now available on the VCTRADE platform following approval from Japanese regulators.

The launch represents the first time a foreign-issued dollar stablecoin has been classified as a Type 4 electronic payment instrument in Japan. SBI executives described the listing as a major milestone for both companies after nearly a decade of cooperation.

Today, the market value of RLUSD is approximately $1.7 billion. The stablecoin will serve payments, collaterals and tokenization services within Japanese markets and Asian markets in general, Ripple said

Reece Merrick, the Managing Director for the Middle East and Africa at Ripple, expressed that the launch serves as a tangible illustration of regulated stablecoins revolutionising access to digital dollars in key financial markets.

Read More: Ripple’s RLUSD Goes Multichain on 40+ Networks, Expanding Access to USD Liquidity

## SBI and Ripple Expand Their Long Partnership

SBI Group and Ripple have been collaborating since 2016 on blockchain infrastructure and digital asset services.

SBI VC Trade CEO Tomohiko Kondo stated that RLUSD has offered a regulated dollar stablecoin alternative to Summit Market Stables’ USDC, which the exchange launched last year.

RLUSD Backed by Regulated Reserve Assets

RLUSD is issued by Standard Custody & Trust Company, Ripple’s regulated trust company in New York.

The stablecoin is collateralised by U.S. dollar deposits, short-term Treasury bills and cash equivalents. Ripple says that third-party accountants audit reserves using monthly attestations.

Custodial assets for customers are said to be segregated from corporate assets, which is intended to boost transparency and lower counterpart risk.

Read More: Ripple Wins MiCA Green Light, Expanding Payment Networks Across 30 EU Markets

Japan Strengthens Its Regulated Stablecoin Market

Japan is now one of the world’s most regulated digital asset markets. The country has provided the legal mechanism for stablecoins for years prior to many major economies in the world.

Ripple executives think that RLUSD is capable of providing liquidity to businesses around the globe, especially in Japan. The crypto-based currency will be used for cross-borders payments, tokenised assets, company treasury management, etc.

The launch, in addition, balances competition in the dollar-stablecoin market in Japan. SBI VC Trade provides institutional and retail users even more regulated means to access dollar-based digital assets with both USDC and RLUSD available.

Ripple (XRP) and SBI said they will remain engaged in promoting more widespread use of stablecoins and financial services via the blockchain in Asia.