In a telling sign for Ripple and its XRP token, the company's dollar-pegged stablecoin, RLUSD, has encountered challenges in one of its most supportive markets—Japan. Despite a long-standing relationship with Japan that dates back to 2016, when SBI invested in Ripple, the landscape for Ripple's ambitions in the country is starting to shift.
A Familiar Partner Turns Cautious
SBI Remit, a Japanese subsidiary of SBI Holdings, launched Japan's first XRP-enabled international remittance flow in 2021. Additionally, SBI VC Trade, another SBI subsidiary, counts XRP among its most popular assets. However, the recent announcement by Ripple and SBI in August 2025 that SBI VC Trade intended to distribute RLUSD has been met with reluctance from Japanese megabanks.
The Trust Factor
Sources familiar with the matter suggest that these banks, which control a significant portion of Japan's financial sector, have reservations about RLUSD. The reasons for this are not entirely clear but may stem from concerns about stability and regulatory compliance.
What Does This Mean for Retail Traders?
For retail traders invested in XRP, the situation presents a mixed picture. On one hand, Ripple's relationships with SBI and its subsidiaries have proven valuable in the past. However, the reluctance of Japanese megabanks to embrace RLUSD could potentially slow down Ripple's growth in the region.
Is This the Turning Point?
As things stand, it remains unclear whether this is a temporary setback or a more significant turning point for Ripple in Japan. The company has faced regulatory hurdles before and has managed to navigate them successfully. However, the continued reluctance of Japanese megabanks could make future growth more challenging.
"It's a reminder that even in friendly markets, the path to widespread adoption can be fraught with challenges," says John M., an analyst at TheCryptocalculators.com.
Bottom Line
Ripple's RLUSD has encountered resistance in Japan, one of its most supportive markets. As we've seen, the reluctance of Japanese megabanks could impact Ripple's growth in the region. For retail traders, this situation underscores the importance of staying informed about regulatory developments and market trends.
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