Ripple's RLUSD launch in Japan sows seeds for stablecoin competition with Circle and Nomura targeting the corporate payment sector.
Ripple has officially launched its proposed USD collateral/">stablecoin, RLUSD, in Japan on June 24, following approval from the Japanese transactions/">Financial Services Agency (JFSA). This milestone marks Ripple's most significant venture in a strategic market, as RLUSD is now accessible to both institutional and retail users through SBI VC Trade.
Ripple categorized RLUSD under Japan's Payment Services Act, classifying it as an innovative electronic payment instrument for foreign-issued stablecoins. This is notably the first regulated dollar stablecoin Ripple has introduced in one of its most maturated markets.
The launch has set off a race among competitors, particularly as Circle and Nomura prepare to unveil a USDC-based digital asset settlement and corporate payment service in Japan by 2027. This emerging landscape could potentially reshape the way businesses operate across borders, drastically reducing the time and complexity of payments.
Ripple's relationship with the Japanese market has been solidified through years of collaboration with SBI, a major financial group. Through this partnership, Ripple has built an extensive infrastructure in Japan, supporting cross-border payments and remittances via the Ripple network.
Since the strategic tie-up in 2016, Ripple’s XRP has gained substantial retail familiarity in Japan, aided by SBI VC Trade, which has successful implementations of Ripple payments in several remittance corridors. With RLUSD, Ripple aims to further penetrate the payment infrastructure by offering a regulated option for users needing dollar access.
As of its launch, RLUSD reportedly achieved a market capitalization of approximately $1.7 billion. This positions it as a competitive player, alongside USDC already available through SBI VC Trade since March 2025. The introduction of JPYSC—Japan’s first trust-type yen stablecoin—aims to augment the stablecoin milieu further and target corporate users seeking to minimize foreign exchange risk.
Circle and Nomura pose a significant challenge to Ripple's ambitions in Japan. Both firms are eyeing a slice of the lucrative corporate payment market by bringing their USDC offerings into the fold. The partnership will facilitate yen-to-USDC conversions, catering to supplier payments, affiliate transfers, and foreign currency settlements.
The Japanese foreign exchange (FX) market is massive, with daily transactions reaching around $440 billion in 2025, according to the Bank for International Settlements (BIS). This data underscores a fertile opportunity for stablecoin-driven services to streamline and expedite what is currently a multi-day process into a matter of minutes.
Furthermore, a survey conducted by Nomura and Laser Digital reveals that 63% of investment professionals in Japan believe stablecoins have varied use cases, including treasury management, cross-border payments, and tokenized asset settlements. Such insights underline the trust bestowed upon stablecoins issued by recognized financial institutions, posing an additional hurdle for newcomers like RLUSD.
SBI has crafted a multi-stablecoin ecosystem, accommodating various issuers and creating a level playing field for products like RLUSD, USDC, and JPYSC. This strategy positions SBI as a central distribution point within the regulated stablecoin market of Japan.
By allowing these stablecoins to coexist on its platform, SBI captures distribution revenue, regardless of which stablecoin gains favor in specific use cases. The forward-thinking positioning ensures that Ripple's RLUSD benefits from established retail access, a luxury that its competitors, Circle and Nomura, might take time to develop.
Moreover, reports suggest that Japan's large banks, such as MUFG, SMBC, and Mizuho, are poised to issue their yen-based stablecoins by 2027. These trusted institutions potentially signal a more significant shift towards yen-denominated stablecoins, which could overshadow dollar options for domestic settlement.
The real test for Ripple and its RLUSD will be its ability to generate meaningful transaction volumes. While Ripple has established railways for cross-border payments, the apprehension lies in whether RLUSD will capitalize on this infrastructure effectively amidst the simultaneous emergence of USDC from Circle and Nomura.
If Nomura activates USDC quickly for corporate FX before Ripple can broaden RLUSD's use beyond SBI VC Trade listings, there exists a possibility that RLUSD becomes merely another listed stablecoin without substantial transaction backing.
Additionally, if major Japanese megabanks successfully launch their products without hesitation, they might absorb domestic payment flows before RLUSD can establish its credibility in Japan's competitive fintech landscape. These dynamics could create a more challenging environment for Ripple as it battles for market relevance.
However, if RLUSD can effectively connect Japanese businesses to dollar liquidity more swiftly than traditional SWIFT channels, it could indeed carve out a lucrative niche for itself. Ripple Payments has already shown potential through the established remittance corridors in cooperation with SBI Remit.
Over the next 18 months, culminating around 2027, the battles for corporate payments and cross-border liquidity will intensify, potentially determining which stablecoin serves as the preferred option for Japanese customers. Critical factors will be transaction flows and user trust in the solutions provided, along with established operational frameworks.
Ripple's ongoing evolution in the Japanese market will be scrutinized with keen interest. The company possesses valuable distribution channels and a well-built trust factor due to its established relationship with SBI.
Nevertheless, the on-going race against Circle and Nomura indicates that stability within the stablecoin market is still in its infancy, as competing entities seek to build trust, improve operational efficiencies, and ultimately gain market share. With the inception of RLUSD in Japan, the competition will likely catalyze further innovations in cross-border payments and domestic transactions.
Ripple’s early entry provides it with an advantage, but the challenge remains to maintain that edge amid evolving competitive dynamics. As RBUSD, USDC, and potential new entrants vie for dominance in a space increasingly marked by regulatory scrutiny and user demands, the next several years are set to be transformative for Japan’s fintech landscape.
What is RLUSD?
RLUSD is Ripple's dollar-pegged stablecoin officially launched in Japan, designed for both institutional and retail users for various payment applications.
How does RLUSD differ from USDC?
While both are stablecoins, RLUSD is a product of Ripple and is integrated within its existing payment infrastructure, whereas USDC is issued by Circle and aims for use in corporate payments.
What is the significance of the stablecoin race in Japan?
The stablecoin race in Japan reflects an evolving fintech landscape, showcasing competition among traditional banks and crypto firms to capture a lucrative market in cross-border and domestic payment solutions.