SBI VC Trade listed RLUSD as Japan’s first regulated US dollar stablecoin under the Fourth Electronic Payment Method

Regulatory approval for RLUSD

Developed in collaboration with Ripple Labs, RLUSD’s regulatory approval marks a significant milestone, granting the token a direct stamp of legitimacy in a leading financial hub. Crucially, this development goes beyond a simple exchange listing; it sets the stage for RLUSD to expand into new, regulation-compliant use cases within Japan’s financial ecosystem.

BankXRP reports that SBI VC Trade listed RLUSD as Japan’s first regulated US dollar stablecoin under the Fourth Electronic Payment Method framework.

SBI VC Trade is the cryptocurrency platform of the SBI Holdings group. With this move, RLUSD is poised to be used by banks, payment service providers, fintech companies, and corporates for cross-border payments, money transfers, treasury operations, trade settlement, and transactions involving tokenized assets.

Mini glossary: The Fourth Electronic Payment Method is a regulatory classification within Japan’s legal framework governing the issuance and circulation of specific digital payment instruments. This structure allows stablecoin-like instruments to be offered through licensed and supervised institutions.

Impact of the Ripple and SBI partnership

The decision further cements the longstanding partnership between Ripple and SBI Holdings. As a leading player in Japan’s financial sector, SBI Holdings serves a key function in Ripple’s Asian presence. Granting RLUSD regulated status in Japan may enhance the overall visibility of the Ripple ecosystem in the region.

Analysts suggest this move could also have indirect effects on XRP. While RLUSD is positioned as a stable settlement instrument, XRP acts as a bridge currency. Their coexistence within the same ecosystem means increased institutional usage, transaction volumes, and network activity could consequently support XRP’s liquidity and adoption.

Japanese institutions’ interest in XRP

Market analyst Diana claims that Japanese institutions collectively hold about $59 billion worth of XRP. Notably, this figure dwarfs the oft-cited $131 million pension fund exposure, representing more than 450 times that amount according to sources.

Analyst Diana notes that Japanese institutions’ XRP holdings have reached approximately $59 billion, highlighting Japan’s strong stake in the Ripple ecosystem.

While this figure has not been independently verified in the report, its scope underlines Japan’s status as one of the largest markets for Ripple and $XRP. This comes as broader activity continues to pick up across Japan’s expansive digital assets sector.

Japan expands digital asset initiatives

SBI Group is reportedly preparing to launch JPYSC, a regulated yen-backed stablecoin. Meanwhile, Japanese lawmakers are pursuing regulatory reforms aiming to classify crypto assets under a framework similar to that of traditional securities. This may pave the way for assets like XRP to be viewed and treated as financial instruments.

Collectively, these initiatives signal Japan’s intent to further develop a regulated digital asset infrastructure. The momentum positions Ripple, RLUSD, and $XRP as core beneficiaries within the country’s evolving market landscape.