Could Japan Lead the Global Stablecoin Surge? Here’s What Ripple’s CEO Thinks

Ripple CEO Brad Garlinghouse Talks Japan’s Blockchain Potential

Brad Garlinghouse, the CEO of Ripple, recently met with Taira Masaaki, a member of Japan’s House of Representatives with a strong focus on Web3 and AI, during XRP Community Day.

The conversation highlighted Japan's commitment to blockchain technology, with Garlinghouse praising the country’s “clear frameworks and constructive policy” that both promote innovation and ensure consumer protection.

In a translated post, Taira noted that their discussions centered on leveraging blockchain to maximise Japan's potential.

The meeting, part of XRP Community Day, was attended by key figures from Japan’s political, financial, and business sectors, reflecting the country’s growing influence in the crypto sphere.

Ripple’s Expanding Influence in Asia

Garlinghouse’s visit to South Korea added another layer to Ripple’s strategic moves in Asia.

During a press conference in Seoul, he criticised U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, referencing a court ruling that XRP is not classified as a security, a significant victory for the crypto industry.

Garlinghouse expressed scepticism about Gensler’s continued leadership and highlighted the importance of bipartisan tech policy ahead of the U.S. elections.

Ripple also announced a partnership with Yonsei University to advance blockchain research, further solidifying its presence in the region.

He emphasised the significance of the Asian market, stating,

“The majority of all XRP held on exchanges worldwide is in Korea and Japan.”

Stablecoin Strategies and Market Insights

Garlinghouse is optimistic about Japan's future demand for a Yen-backed stablecoin, although he revealed in an interview with Bloomberg’s “The China Show” that Ripple plans to launch its stablecoin in the U.S. first.

He described Japan as “conservative” in some ways but noted that its clearer regulatory frameworks make it easier for businesses to grow compared to markets like the U.S. and the U.K.

According to Garlinghouse,

“People will want to hold Yen stablecoins, and I think that is only a matter of time.”

Ripple has begun testing its U.S. dollar-pegged stablecoin, Ripple USD (RLUSD), on the XRP Ledger and Ethereum networks, with plans to expand to other blockchain platforms.

Japan’s Growing Interest in Stablecoins

Japan’s largest banks, including Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, are supporting a stablecoin project aimed at improving international business payments.

This support reflects Japan's increasing interest in stablecoins.

Despite this, Garlinghouse confirmed that Ripple will focus on regulatory alignment in the U.S. before considering a launch in Japan.

He explained,

“A key issue that we will continue to make sure we are partnered with U.S. regulators before we go live with the stablecoin.”

Ripple’s strategy is to first issue the stablecoin in the U.S., with future plans for global expansion, including Japan.

Japan’s Entrepreneurial Climate

Garlinghouse highlighted Japan's robust entrepreneurial environment, attributing it to the country’s regulatory clarity on stablecoins and cryptocurrencies.

He praised Japan for “leaning in” on legislation that supports these technologies, which has fostered a healthy investment climate.

Garlinghouse compared Japan’s proactive stance with the U.S., noting,

“That has really allowed entrepreneurship and investment to really thrive here in Japan.”

He asserted that Ripple’s initial focus would be on the U.S. market, but acknowledged the potential for stablecoins in Japan and globally.