Despite being one of Ripple’s most supportive markets, Japan presents obstacles for Ripple’s stablecoin RLUSD due to the high trust placed in megabanks. SBI has been a significant partner since its 2016 investment in Ripple, and by 2021, SBI Remit had launched Japan’s first XRP-enabled international remittance service. The collaboration deepened when it was announced in August 2025 that SBI VC Trade would distribute RLUSD in Japan.
A survey conducted between December 2025 and January 2026 by Nomura and Laser Digital involving 518 investment professionals revealed that 63% see potential uses for stablecoins, including treasury management and cross-border payments. Despite this interest, major financial institutions’ stablecoins were deemed most trustworthy in JPY, USD, and EUR denominations.
Ripple has a strong foundation in Japan through SBI Ripple Asia, which has been part of Ripple’s regional infrastructure since 2016. SBI Remit began using Ripple Payments in 2017 and expanded XRP-based remittance corridors into several countries by September 2023. Despite this robust network, RLUSD faces stiff competition from Japanese financial institutions.
Japan’s regulatory environment favors bank-issued stablecoins due to their alignment with existing deposit protections. In November 2025, major banks including MUFG, Mizuho, and SMBC announced an FSA-supported proof of concept for joint stablecoin issuance. SBI’s materials indicate USDC is already approved in Japan, while RLUSD awaits listing approval.
The survey indicates that Japanese institutions prioritize trusted financial entities for high-value use cases like treasury management and tokenized securities settlement. However, Ripple’s infrastructure positions RLUSD favorably for cross-border payments and international remittances.
Two potential outcomes are considered: If Japanese institutions distinguish between domestic and USD-denominated transactions, RLUSD could thrive in the cross-border market. Conversely, if trust remains tied to major financial institution issuers across all stablecoin uses, RLUSD might be limited to its existing roles within Ripple’s ecosystem.
Ultimately, Japan serves as a test case for how institutional markets respond when traditional banks introduce their own stablecoins. This scenario provides insights into whether compliance and local distribution can rival established financial trust even in bank-centric environments.