Why Ripple’s RLUSD Got Snubbed in SBI’s Japan Payment Test Despite XRP Ties

Ripple's stablecoin got left at the starting gate. SBI Holdings just wrapped a major payment infrastructure test in Japan, and RLUSD—Ripple's own dollar-pegged token—was conspicuously absent from the lineup.

XRP's Deep Ties, RLUSD's Shallow End

SBI and Ripple aren't just partners; they're intertwined. SBI's VC trade arm leans on RippleNet, and the two jointly run SBI Ripple Asia. So when SBI announced a pilot for a new digital payment system, the natural assumption was that Ripple's entire ecosystem, including its freshly minted stablecoin, would be front and center. It wasn't.

The Regulatory Chessboard

Japan's Financial Services Agency (FSA) plays a long game. Their approval process for stablecoins—especially foreign-issued ones like RLUSD—is notoriously meticulous. The pilot likely prioritized assets with established regulatory clarity or those issued domestically under Japan's stringent payment laws. RLUSD, still in its global rollout phase, may not have cleared the FSA's high bar for this specific test. Sometimes, moving fast and breaking things just means you're not invited to the regulated party.

Strategic Pivot or Simple Prudence?

This omission doesn't spell doom. It highlights a strategic reality: in global finance, you use the right tool for the job. The test's goal was proving system interoperability and speed. XRP, as a bridge asset, might have been the chosen scalpel for settlement, while other, more locally vetted stablecoins handled the payment leg. It's a reminder that in corporate blockchain, partnerships are about utility, not loyalty—a concept as old as finance itself, where yesterday's ally is tomorrow's competitor.

The bottom line? Building the future of money involves navigating a maze of existing rules. RLUSD's no-show isn't a failure; it's a footnote in the tedious, unglamorous paperwork that actually governs this revolution. After all, what's a little regulatory sidelining between friends?

SBI Group is preparing to test a new cashless payment system in Japan using USDC, a US dollar–linked stablecoin issued by Circle. The pilot project is expected to begin in spring 2026 and will focus on in-store payments using QR codes.

The test will be run by SBI VC Trade, Japan’s only registered operator allowed to handle stablecoins, along with APLUS, a payments company that works with a wide network of retail stores. The goal is to build a simple payment model where customers can pay in USDC and stores receive Japanese yen.

Under the plan, customers holding USDC in private wallets like MetaMask will scan a store’s QR code and pay using USDC. SBI VC Trade will then convert the USDC into yen and send it to APLUS, which will pass the funds on to the merchant.

SBI says the project builds on lessons learned from the Osaka-Kansai Expo, where digital wallets were tested for visitors. The company also hopes the system will be useful for foreign tourists, who may find it easier to pay with dollar-based digital money instead of cash.

Why USDC and Not Ripple’s RLUSD

The announcement has drawn attention because SBI has a long-standing relationship with Ripple, yet the pilot uses USDC instead of Ripple’s own US dollar stablecoin, RLUSD.

Pro-XRP lawyer Bill Morgan reacted to the news, saying the decision likely reflects timing rather than a lack of confidence in Ripple. He noted that when SBI VC Trade became Japan’s first registered stablecoin operator in March 2025, RLUSD was not yet ready for use, while SBI already had an existing partnership with Circle.

A new cashless payment model using USDC not RLUSD despite its parent company’s DEEP longstanding relationship with Ripple. Reflects that RLUSD was not sufficiently ready in March 2025 when SBI VC Trade became Japan’s first registered Electronic Payment Instruments Exchange… https://t.co/q2XVEu8taO

Morgan added that RLUSD is expected to catch up over time and said Ripple’s decision to launch its own US dollar stablecoin was critical. He also suggested that Ripple may have moved earlier if not for delays caused by its long legal battle with the US Securities and Exchange Commission.

What Comes Next

If the trial is successful, SBI and APLUS plan to expand the system to more stores and explore wider use of stablecoin payments across Japan.