Even when Ripple and XRP faced challenges in their home market, Japan has remained a strong ally. Now, recent regulatory and institutional shifts suggest the country could play an even bigger role in their future.
Over the past several months, Japan has accelerated efforts to modernize its digital asset framework. Proposed legal reforms aim to classify many cryptocurrencies as financial instruments, which would pave the way for spot ETFs. The country also introduced a more investor-friendly tax regime. While the legislation still needs to go through the full process before these vehicles can launch, the direction is becoming clearer. This could be significant for XRP.
SBI Continues Pro-Ripple Push
SBI Holdings has been a key partner. Through SBI Ripple Asia, both parties have worked for years to expand cross-border payments across the region. SBI VC Trade remains one of Japan’s largest XRP-friendly exchanges. Most recently, Ripple and SBI announced that Ripple’s stablecoin, RLUSD, has launched in Japan after receiving approval from the Japan Financial Services Agency (JFSA). This expanded their partnership into the regulated stablecoin market.
SBI has also filed for a product that could become the first Japan-based XRP ETF. Instead of pairing the two largest cryptocurrencies by market cap, the proposed product targets Bitcoin and XRP. This highlights the firm’s conviction that Ripple’s token could become a core institutional asset in the country.
Institutional Demand on the Horizon
Given the short history of crypto and the lack of regulation in many places, proper frameworks can open doors for larger investors. Japan has been at the forefront of crypto regulation, and XRP has generally benefited. Unlike the prolonged legal battle Ripple faced in the US against the SEC, Japanese regulators have long treated XRP as a crypto asset rather than a security. Combined with SBI’s banking ties and Ripple’s growing enterprise presence, that regulatory certainty has created one of XRP’s strongest international footholds.
If Japan approves spot crypto ETFs, XRP could be among the earliest beneficiaries. Its history and the existing infrastructure there give it a head start.
