Ripple Surprises with Japan Initiative: Partnership Agreement Signed

Although Japan's stablecoin framework, the Payment Services Act, has been in effect since 2023, SBI VC Trade has become the first provider to be licensed under this law.

Two years after obtaining the license, the company is leveraging this position to launch the distribution of Ripple USD (RLUSD) and other stablecoins in Japan.

Ripple and its subsidiary, SBI VC Trade, have signed a new memorandum of understanding (MOU) for the distribution of RLUSD in Japan, according to a blog post by Ripple. SBI VC Trade has begun offering stablecoin services, becoming the first entity in the country to receive an Electronic Payment Instruments Exchange Service Provider License.

The stablecoin market, currently around $300 billion, is expected to reach a trillion dollars in the coming years. The key drivers of this growth will be usage and institutional demand.

According to the blog post, RLUSD stands out as a stablecoin developed with institutional-grade principles of reliability, compliance, and transparency. RLUSD is backed by US dollar deposits, short-term US government bonds, and cash-like assets. Transparency is also ensured through monthly verifications by an independent auditing firm.

Tomohiko Kondo, CEO of SBI VC Trade, said:

“Our company is pioneering the stablecoin space as the first organization to receive an Electronic Payment Instruments Exchange License in Japan. The launch of RLUSD will not only increase stablecoin options in Japan but also represent a major step forward in terms of reliability and ease of use. We will continue to build a secure and transparent financial infrastructure together with Ripple.”

Jack McDonald, Senior Vice President of Ripple Stablecoin, added:

“Our partnership with SBI has always been about more than just technology; it has aimed to build a reliable and harmonious financial future. The rollout of RLUSD in Japan is a result of this work. RLUSD is designed to create a reliable bridge between traditional and decentralized finance. This collaboration will not only increase stablecoin adoption in Japan, but also set a new standard for the entire market.”