Japan’s Stablecoin Framework
Although Japan’s stablecoin framework, the Payment Services Act, has been operational since 2023, SBI VC Trade has emerged as the first provider to secure a license under this legislation.
Two years after achieving this license, the company is now utilizing its position to initiate the distribution of Ripple USD (RLUSD) and additional stablecoins within Japan.
Memorandum of Understanding
Ripple and its subsidiary, SBI VC Trade, have entered into a new memorandum of understanding (MOU) regarding the distribution of RLUSD in Japan, as highlighted in a blog post by Ripple. SBI VC Trade has launched stablecoin services, becoming the first entity in the nation to obtain an Electronic Payment Instruments Exchange Service Provider License.
Stablecoin Market Growth
The stablecoin market, currently valued at approximately $300 billion, is projected to reach a trillion dollars in the coming years. The primary factors driving this growth will be increased usage and institutional demand.
Features of RLUSD
According to the blog post, RLUSD distinguishes itself as a stablecoin created with institutional-grade principles of reliability, compliance, and transparency. RLUSD is backed by US dollar deposits, short-term US government bonds, and cash-equivalent assets. Monthly verifications by an independent auditing firm further ensure transparency.
Statements from Leadership
“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 enhance stablecoin options in Japan but also signify a significant advancement in terms of reliability and usability. We are committed to developing a secure and transparent financial infrastructure alongside Ripple.”
“Our partnership with SBI has always focused on more than just technology; it aims to foster a dependable and harmonious financial future. The introduction of RLUSD in Japan is a culmination of this effort. RLUSD is crafted to establish a reliable connection between traditional and decentralized finance. This collaboration will not only promote stablecoin adoption in Japan but will also set a new benchmark for the entire market.”
*This is not investment advice!
