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Ripple’s CEO Brad Garlinghouse has identified significant opportunities for stablecoins on a global scale, with a particular focus on Japan. During an interview with Bloomberg, Garlinghouse confirmed that the company is working towards launching a stablecoin in Japan soon.
Launch Plans for RUSD in Japan
Garlinghouse revealed that Ripple plans to introduce the Ripple-USD stablecoin (RUSD) once approval is granted by U.S. regulators. He emphasized that all of Ripple’s operations are conducted in line with regulatory compliance and licensing requirements. “Our expectation has been to move as quickly as we can. But, we’re optimistic,” he stated, indicating a proactive yet patient approach toward the launch.
Global Stablecoin Opportunities
While Garlinghouse had previously indicated that the U.S. stablecoin launch could happen in a matter of weeks, he underscored his belief in the global potential for stablecoins. Japan, in particular, has made strides in this area. The country approved significant legislation a year ago, which became effective this year, paving the way for stablecoin implementations.
Garlinghouse noted that the Japanese market is robust, albeit somewhat conservative. The Financial Services Agency (FSA) of Japan has provided a clear regulatory framework, which offers clarity on how cryptocurrencies will be governed. “Many countries are taking the lead, and in many ways, Japan has set a strong example, even if they approach things with caution,” he remarked.
Focus on RUSD and Future Developments
Currently, Ripple’s priority is to successfully launch RUSD. Garlinghouse mentioned that a yen-backed stablecoin could become a possibility in the future, although he did not elaborate on specifics.
In addition, Garlinghouse highlighted Ripple’s productive partnership with the New York Department of Financial Services (NYDFS). The company’s acquisition of Standard Custody, which boasts an NYDFS trust license, further solidifies Ripple’s commitment to regulatory collaboration before proceeding with their stablecoin launch.
Differentiating XRP and RUSD
Ripple has traditionally utilized XRP, its native digital asset, as a “bridge asset” for facilitating cross-border money transfers. However, the company acknowledges the substantial growth potential within the stablecoin market, especially for USD-pegged stablecoins, which currently has an estimated market cap of $170 billion. Garlinghouse projected that this market could reach between $2 to $3 trillion within the next five years.
“We recognized an opportunity to penetrate the stablecoin market as it continues to expand,” Garlinghouse said. “We always prioritize what’s best for the customer, which is why we’ve decided to develop our own stablecoin. We’re excited to launch this year.”
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