- Ripple, the leading provider of digital asset infrastructure is set for global adoption as 80% of Japanese banks have already integrated XRP into its financial systems.
- The adoption of Ripple by Japanese banks marks a significant shift for blockchain in mainstream finance, enabling faster and more cost-effective global payments.
2025 is already shaping up to be a significant year for Ripple as it surpasses other altcoins and even challenges the dominance of Bitcoin in mainstream adoption. Notably, more than half of Japanese banks are making strides by integrating XRP into their financial systems.
At the forefront of this initiative is SBI Holdings, a supporter of Ripple’s On-Demand Liquidity (ODL) product, which employs the XRP cryptocurrency to facilitate instant and cost-effective international payments. Yoshitaka Kitao, the CEO of SBI Group and a major player in Japan’s finance sector, has expressed strong backing for XRP, emphasizing its utility for international remittances.
The Advantages of Ripple Adoption in Japan
The widespread adoption of XRP by numerous Japanese banks could have significant implications for the financial sector. By incorporating XRP into their operations, these banks could enhance their foreign exchange and cross-border payment processes, resulting in improved efficiency and quicker service for customers, minimizing the waiting times for transactions that typically take several days.
Moreover, with the utilization of the On-Demand Liquidity (now referred to as Ripple Payment) system, the transaction fees associated with using XRP could be considerably lower than those of traditional banking systems. This cost reduction could be advantageous for both consumers and businesses, ultimately making international trade more accessible. Additionally, a more efficient and cost-effective payment system can provide previously underserved populations with better access to banking services, thereby promoting improved financial inclusion in the region.
Ripple’s impact is not confined to Japan. Financial institutions around the globe, including Santander in the UK, CIBC in Canada, Kotak Mahindra Bank in India, and Itaú Unibanco in Brazil, have established partnerships with Ripple to streamline their cross-border transactions.
Despite Ripple’s lawsuit with the Securities and Exchange Commission (SEC), which has made some U.S. banks cautious about partnerships, Japanese banks continue to support the cryptocurrency. If the SEC were to drop its appeal, it could clarify XRP’s classification as a non-security, potentially boosting its chances for ETF approval. This situation may evolve under Trump’s administration, especially as pro-crypto SEC Chair Paul Atkins will replace Gary Gensler this month.
In South Korea, XRP has generated significant trading activity, with UpBit recording an impressive $600 million in trades and Bithumb following closely with over $200 million. In stark contrast, Bitcoin’s trading volumes on these exchanges lag significantly behind, amounting to less than half of XRP’s. Currently, XRP is trading at $2.24, reflecting a 3.42% increase in the past 24 hours. This price stability suggests that XRP is in a phase of extended consolidation, further reinforcing its potential as the crypto space continues to advance in blockchain technology.
