- Garlinghouse has seen Ripple’s stablecoin vision crash against U.S. regulations.
- Ripple’s CEO has bet on Japan as the launchpad for their new stablecoin.
- With trillions at stake, Ripple has been fiercely pushing to roll out its stablecoin.
Ripple CEO Brad Garlinghouse is gearing up for a bold move into the stablecoin market, but the U.S. may not be the first to see it. In a recent interview with Bloomberg, Garlinghouse revealed that Japan will likely be a key market for Ripple’s upcoming Ripple-USD (RLUSD) stablecoin as regulatory hurdles in the U.S. continue to slow progress.
The RLUSD stablecoin is set to launch—eventually. However, the rollout hinges on U.S. regulatory approval, which has been anything but swift. “Everything Ripple does is in conjunction with regulatory approval and licensing,” Garlinghouse stated. “Our expectation has been to move as quickly as we can. But, we’re optimistic.”
Ripple’s Global Ambitions Hit a Wall in the US
That optimism may be shifting overseas. While U.S. regulators stall, Japan appears ready to embrace Ripple’s stablecoin ambitions.
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“Japan approved some legislation a year ago that came into effect this year. And so, there’s a process underway now to do stablecoins here in Japan as well,” Garlinghouse explained.
Japan’s Financial Services Agency (FSA) has laid out a clear regulatory framework for cryptocurrencies, positioning the country as a potential leader in stablecoin adoption.
Garlinghouse praised Japan’s market for being “healthy” but acknowledged it remains conservative. Despite this, he hinted that a yen-backed stablecoin could be on the table sooner rather than later, stating it’s “a matter of time.”
Ripple’s frustrations with U.S. regulatory delays are evident. Garlinghouse noted the company’s strong partnership with the New York Department of Financial Services (NYDFS) and its acquisition of Standard Custody, which holds an NYDFS trust license. Yet despite these steps, Ripple is still waiting for regulators’ green light to launch RLUSD in the U.S.
Ripple’s CEO: “U.S. Must Act or Japan Will Lead”
Meanwhile, Ripple’s flagship asset, XRP, has been a critical tool for cross-border payments, but Garlinghouse sees stablecoins as the next big frontier. The USD-pegged stablecoin market, currently valued at $170 billion, is expected to balloon to $2-$3 trillion in just five years. “We felt that there’s an opportunity to enter the stablecoin market as that market continues to grow,” he said.
Garlinghouse’s message is clear: Ripple is ready to dive into the booming stablecoin market, but if U.S. regulators don’t move, Japan might beat them to it. “We always use what’s best for the customer, and we decided to go live and build our own stablecoin. We’re excited to get live with that this year.”
On the Flipside
- Despite optimism, Ripple’s entry into Japan’s stablecoin market may face unpredictable market dynamics or shifts in consumer preferences.
- Ripple’s focus on Japan might mask other internal or external challenges affecting the RUSD launch.
Why This Matters
Ripple’s focus on Japan for its RUSD stablecoin launch, amid ongoing U.S. regulatory delays, highlights Japan’s emerging role in the stablecoin market. This move could shift the competitive advantage in the sector, pressing U.S. regulators to act swiftly to avoid being outpaced by more agile international markets.
To learn more about the factors that could influence the price of XRP in the coming months, including the upcoming launch of Ripple’s stablecoin, read here:
Will XRP Surge or Sink with New Developments on the Horizon?
To learn more about the recent outflows from Bitcoin and Ethereum ETFs and what it might signal for the future, read here:
Why Bitcoin and Ethereum ETF Outflow Streak Might Not Be Over Yet
