As stablecoins continue to garner momentum internationally, more markets are opening to the possibilities of experimenting with them. In a fresh development, Ripple has announced that it will be launching its USD-pegged stablecoin RLUSD in Japan as early as next year.
For the RLUSD debut in Japan, Ripple has struck a partnership with SBI Holdings, a major Japanese financial services conglomerate and its subsidiary SBI VC Trade Co., Ltd., that provides a crypto asset exchange business — that jointly form the SBI Group.
Commenting on the token’s planned entry into Japan, the SBI Group said the move is bound to expand stablecoin adoption in the Asian market and accelerate the convergence of traditional finance with the digital assets sector.
“Our company has been the first to obtain the Electronic Payment Instrument Exchange Service Provider License in Japan. The introduction of RLUSD is a major step forward in the reliability and convenience of stablecoins in the Japanese market. We will continue to work with Ripple to build a safe and transparent financial infrastructure,” said SBI VC Trade CEO Tomohiko Kondo.
Ripple forayed into the stablecoin market with RLUSD in December last year. The token that maintains a 1:1 ratio with the USD is completely backed by U.S. Treasuries, bank deposits, and cash equivalents. As per CoinMarketCap, the present market cap of the RLUSD stands at $666.5 million.
“RLUSD is designed to be a true industry standard, providing an efficient bridge between traditional and decentralized finance. We are confident that this partnership will drive stablecoin utility in Japan,” said Jack McDonald, Ripple’s Senior Vice President of stablecoins.
In the backdrop of the U.S. legitimizing stablecoins with the GENIUS Act, the global perception towards these fiat-backed digital assets has pivoted towards exploration and adoption. Ripple, itself, has started injecting the RLUSD in pro-crypto jurisdictions to expand its market presence.
In June, for instance, the XRP-issuer received a clearance by the Dubai Financial Services Authority (DFSA), recognizing the RLUSD as a legit crypto token which can now be used within the Dubai International Financial Centre (DIFC).
Ripple is now eyeing the launch of RLUSD in Europe as it plans to obtain a license in Luxembourg.
The Bank of New York Mellon Corporation (BNY) has been picked as the custodian of the RLUSD reserves by Ripple.
“Valued at nearly $300 billion today, the stablecoin market is expected to grow into the trillions in the coming years. As stablecoins become a key part of global financial infrastructure, the next wave of adoption will be driven by utility and institutional demand,” Ripple said in its statement announcing its plans for Japan.