Ripple's agreement in Japan: Implications for XRP's current value

In a significant move for the digital currency industry, the Dubai Financial Services Authority has given its approval for the use of RLUSD, a stablecoin issued by Ripple in partnership with Japanese financial conglomerate SBI Holdings, in the Dubai International Financial Centre.

RLUSD, a USD-pegged stablecoin, was launched in December 2024. It is backed 1:1 by high-quality reserves, including USD deposits, short-term US Treasury bonds, and other liquid assets. The growth in the total supply of USD-pegged stablecoins has seen a significant increase, rising from $256 billion at the beginning of the month to $266 billion, according to data from The Block.

SBI VC Trade, the crypto trading arm of the SBI group, will handle the distribution of RLUSD in Japan, where its availability is expected by the first quarter of 2026. This expansion into Japan is part of a global strategy for Ripple, as it aims to introduce the Ripple stablecoin RLUSD in key growth markets.

The partnership with SBI Holdings is a strategic move for Ripple, as it allows for the conquest of the highly regulated Japanese market. This partnership is also seen as a stamp of approval for Ripple technology in the mainstream.

As of current data from CoinGecko, RLUSD has a market capitalization of $666 million and a 24-hour trading volume of $71 million. The growth of Ripple's network is expected to benefit the underlying XRP token, and the increasing acceptance of Ripple technology is expected to benefit from increased usage.

Japan is one of the key growth markets for digital currencies, and the expansion of RLUSD into the country strengthens the stablecoin's presence in the Middle East and further cements its position in the global market. The approval by the Dubai Financial Services Authority is another step towards achieving this goal.

This partnership with SBI Holdings marks a crucial milestone in Ripple's expansion into Asia. Ripple announced this strategic partnership with the Japanese financial giant in a move that is expected to boost optimism for the underlying XRP token. The deal with SBI Holdings is a testament to the growing acceptance and adoption of Ripple technology in the financial industry.