Ripple and SBI Forge Ahead: RLUSD Stablecoin Launch in Japan Amid XRP Market Dip

Ripple and SBI just dropped a bombshell—they're bringing the RLUSD stablecoin to Japan's shores. This isn't just another crypto play; it's a strategic power move into one of Asia's most regulated markets.

Why This Matters Now

While XRP faces headwinds, this partnership bypasses the volatility debate entirely. RLUSD aims to anchor crypto-fiat transactions with the stability traditional finance craves—but rarely delivers. SBI's clout with Japanese regulators gives this venture a fighting chance where others have stumbled.

The Real Test: Adoption

Success hinges on more than just compliance. It'll need to win over a market that's both tech-savvy and notoriously cautious. If they pull it off? They might just prove that stablecoins can do what bankers have long doubted—actually work reliably in the real world. Imagine that.

Ripple Expands Stablecoin Strategy With SBI

On Friday, Ripple revealed that it had signed a memorandum of understanding (MOU) with SBI Holdings to distribute RLUSD in Japan. The rollout will be handled by SBI VC Trade, a licensed Japanese crypto exchange and a subsidiary of SBI. According to the reveals, distribution is expected to begin in the first quarter of 2026.

SBI VC Trade is uniquely positioned to handle the stablecoin’s entry into the Japanese market. It was the first entity in Japan to register as an Electronic Payment Instruments Exchange Service Provider, a designation that allows it to operate under Japan’s evolving stablecoin regulations. This licensing framework will make RLUSD one of the first fully compliant foreign-issued stablecoins accessible to Japanese users.

RLUSD Coming to Japan

Tomohiko Kondo, CEO of SBI VC Trade, said the partnership could significantly enhance the domestic stablecoin market.

“The introduction of RLUSD will not just expand the option of stablecoins in the Japanese market, but is a major step forward in the reliability and convenience of stablecoins,” Kondo noted.

However, Ripple and SBI did not clarify whether RLUSD would be limited to institutional usage or offered directly to retail customers. Japan’s stablecoin laws allow for both possibilities, but compliance requirements differ depending on whether coins are used for payment services, settlements, or consumer-facing products.

A Long History Between Ripple and SBI

The new initiative builds on nearly a decade of collaboration between Ripple and SBI. The two firms first partnered in 2016, creating SBI Ripple Asia, a joint venture in which SBI holds a 60% stake and Ripple retains 40%. The venture has been instrumental in promoting Ripple’s cross-border payment solutions throughout Asia, particularly in high-volume remittance corridors.

Ripple’s decision to use Japan as an entry point for RLUSD’s global expansion highlights both SBI’s regulatory strength and the country’s openness to exploring blockchain-based payment infrastructure.

Ripple’s Stablecoin Still a Small Player

Despite the partnership, RLUSD remains relatively small compared to dominant stablecoins like Tether (USDT) and Circle’s USD Coin (USDC). Ripple started RLUSD in December 2024, and while its circulating supply has grown, it currently stands at just $666 million. That represents only 0.24% of the $280 billion global stablecoin market, according to industry data.

By comparison, Tether’s supply is above $125 billion, while USDC hovers NEAR $35 billion. This shows Ripple has significant ground to cover if it hopes to challenge the established players. Still, executives at Ripple argue that RLUSD’s integration into Ripple’s payment ecosystem and partnerships with regulated entities like SBI give it a unique path to adoption.

Ripple Expands Beyond SBI Partnership

The SBI deal is just one part of Ripple’s broader growth push. In related developments, Ripple recently extended a $75 million secured credit line to Gemini, the US-based crypto exchange. The loan facility can be expanded up to $150 million, and once the threshold is crossed, Gemini will be able to draw funds directly in RLUSD.

Industry observers suggest this could pave the way for Gemini to use RLUSD in its anticipated public offering, giving Ripple’s stablecoin a high-profile role in a potential US IPO settlement process.

Meanwhile, competition in the stablecoin sector is heating up. ethereum wallet provider MetaMask revealed its own stablecoin, mUSD, adding to the already crowded field of digital dollar-pegged tokens.

XRP Price Slips Despite Positive Developments

Despite the bullish news around RLUSD, Ripple’s native token XRP struggled on Friday. During Asian trading hours, XRP fell 3.6% in the past 24 hours, sliding to $2.83, its lowest level in three weeks.

XRP has underperformed compared to the broader crypto market. While total market capitalization has dropped roughly 8.5% since its August 14 peak, XRP has fallen 22% since hitting its all-time high of $3.63 on July 18.

Market analysts suggest that traders may be more focused on short-term technical signals than long-term ecosystem developments. XRP is currently facing resistance at the $3.00 level, and further declines could push the token toward its 100-day moving average.

Outlook: Adoption vs. Market Sentiment

Ripple’s partnership with SBI Holdings demonstrates the company’s commitment to making RLUSD a globally adopted stablecoin. Japan’s regulatory clarity and SBI’s strong presence in financial services make it a strategic for Ripple’s expansion in Asia.

However, XRP’s price decline illustrates the disconnect between ecosystem developments and market sentiment. While long-term adoption of RLUSD could strengthen Ripple’s position in the digital payments industry, traders remain cautious as the crypto market undergoes a broader correction.