The launch of the Ripple-USD (RLUSD) stablecoin is facing several challenges in the US owing to regulatory issues that are hindering the process. CEO Brad Garlinghouse revealed that the company is considering Japan as the next region for the new stablecoin launch.
The decision comes at a time when Ripple is struggling with hiccups around regulation in the United States. In addition to that, the launch of RLUSD has been delayed since April when the firm first announced its plans.
Ripple’s Regulatory Challenges in the US
Ripple’s activities in the US were also slowed down by some regulatory procedures during the launch of RLUSD. The company has tried to fulfill all legal obligations and get all the required permits but approval is still pending.
The current US regulatory framework remains a major concern for Ripple’s adoption of stablecoins. Brad Garlinghouse also pointed to the current efforts of Ripple to address these challenges.
According to him, Ripple is cooperating with the New York Department of Financial Services (NYDFS) and has recently purchased Standard Custody which proves its compliance. However, these have not resulted in the much needed regulatory approvals.
Japan Emerges as a Key Market
In contrast to lack of clarity in the US, Japan continues to provide a clear pathway for the launch of RLUSD. Regulators in Japan have recently come up with favorable laws for stablecoins and this makes the country a potential market.
Regulations Japan are well defined by the Financial Services Agency (FSA) and this is what Ripple wants to tap into.Brad Garlinghouse shared a post on X, featuring his picture with Japanese leader Tairamasaaki, as he hyped the team.
“Japan’s leaders are committed to advancing crypto and blockchain technology, through clear frameworks and constructive policy that protects consumers and enables innovation.” He said
This move shows that the focus of Ripple’s stablecoin strategy is slowly shifting towards Japan. Garlinghouse pointed out that the changing regulatory environment in Japan may allow for a faster launch of RLUSD.
Future Prospects and Market Impact
With the launch of its stablecoin, Ripple intends to challenge other players in the market such as Tether’s USDT and Circle’s USDC. The stablecoin is set to operate in the XRP ledger and Ethereum blockchain.
The USD-pegged stablecoin market is estimated to be worth $170 billion and is expected to expand in the future. Ripple considers this as a chance to get into a still-developing market.
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