Ripple's CEO Brad Garlinghouse Is Convinced Japan Will See Strong Demand for a Yen Stablecoin

In an interview with Bloomberg's The China Show, Brad said: "People will want to hold yen stablecoins, and I think that is only a matter of time."

Ripple CEO Brad Garlinghouse believes that there will be high demand for a yen stablecoin in Japan. However, he made no commitments regarding Ripple launching one.

In an interview with Bloomberg’s The China Show, Brad said:

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

Highlighting Japan’s clear regulatory stance on stablecoins and cryptocurrencies, Brad noted that the country has been a forerunner in the crypto space.

He mentioned that compared to countries like the US, UK, and Switzerland, Japan has been ahead of the curve. However, at least for now, not for Ripple.

Emphasizing this, Brad said:

“We will first issue it in the US, but we think there is opportunity for stablecoins globally, and certainly in Japan.”

Meanwhile, the yen is still gaining strength against major currencies, especially the US dollar.

The USD/JPY exchange rate dropped to 142.27 yen, down from 143.38 on September 6. This is largely due to speculation that the Federal Reserve might cut interest rates.

The Bank of Japan (BOJ) is also considering policy adjustments, with Governor Kazuo Ueda saying they may hike rates if their economic outlook holds.

Additionally, fears of a US recession are making safe-haven currencies like the yen and Swiss franc more attractive to investors.

The USD/JPY pair has a volatile history, peaking at 358.44 in January 1971.

Predictions from Trading Economics say the exchange rate could trade around 144.49 by the end of this quarter and hit 148.51 within 12 months.

The yen carry trade unwind led to market volatility in early August, but economists are hopeful for a market recovery in October.

Moreover, Japan is also dealing with low inflation, with its core inflation rate sitting at 2%, much lower than in the US.

The overall stablecoin market has been growing steadily. The total supply has reached $162.1 billion, a 3% increase since August, despite the broader crypto market downturn.

Tether (USDT) continues to dominate the market with a $119 billion market cap, making up more than 73% of the total stablecoin supply.

USD Coin (USDC) follows with a $33.5 billion market cap, and DAI holds third place with $5.3 billion.

In other news, Ripple is preparing to launch RLUSD, a USD-pegged stablecoin for institutional investors.

Initially, retail investors will not be able to directly purchase RLUSD, much like how USDC and USDT are restricted when it comes to direct purchases by individuals.

Tether has been expanding its portfolio. The company recently invested $102 million in an agricultural business in Argentina. This is part of its strategy to diversify its assets, which already include huge holdings in gold and Bitcoin.

Amidst it all, investors have moved nearly $4.7 billion into stablecoins. This has led to a 25% reduction in open interest within the crypto derivatives market between July and September.

Stablecoins’ growth shows no signs of slowing down. Major financial institutions like JPMorgan, VanEck, and even PayPal have and are developing their own stablecoins.

Regulatory frameworks like the European Union’s MiCA are coming into play, shaping the future of the market. The introduction of a yen stablecoin could drive the next phase of stablecoin innovation.

Stablecoins are designed to maintain a stable value by being pegged to a reserve asset, such as fiat currencies.

This makes them particularly useful for applications like payments and cross-border remittances, as they offer less volatility compared to regular cryptocurrencies. In the case of a yen stablecoin, it would operate in a similar manner.

Due to their stability, stablecoins are also suitable for storing value and can be integrated into smart contracts for automating transactions within decentralized finance (DeFi).

One of the key benefits of stablecoins lies in their ability to enhance payment efficiency by reducing costs and transaction times, especially for cross-border payments, offering a crucial solution in regions with limited traditional banking infrastructure.

Furthermore, stablecoins can contribute to financial inclusion by enabling stable and secure transactions for those who may not have access to banks.

This can drive economic growth in developing countries and empower more individuals to participate in the global economy.

Additionally, stablecoins can streamline international trade by eliminating the need for currency conversions and reducing reliance on banks.

Small businesses, in particular, can benefit from faster transactions and lower fees, giving them a competitive edge in global markets.

Lastly, stablecoins also facilitate the tokenization of assets, enabling real estate, stocks, and other valuable items to be traded more easily, which can increase liquidity and open up more investment opportunities.

A yen stablecoin could contribute to the

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