In a significant shift within the Asian crypto landscape, Ripple’s XRP has overtaken Ethereum (ETH) to become the second most-traded cryptocurrency in Japan—surpassing major altcoins like Solana (SOL) and Dogecoin (DOGE)—according to recent data from SBI VC Trade, one of Japan’s largest digital asset exchanges. Bitcoin (BTC) remains the top-traded asset, with XRP now firmly holding the second position among Japanese investors.
This growing dominance reflects a broader trend of institutional and retail adoption driven by favorable regulatory clarity, strategic partnerships, and real-world utility in cross-border payments. Behind this momentum is a powerful alliance between Ripple and Japan's financial elite, particularly SBI Holdings—one of the nation’s most influential financial conglomerates.
Strategic Alliance Fuels XRP Adoption
A key driver behind XRP’s success in Japan is its long-standing partnership with SBI Holdings, which dates back to 2016. That year, Ripple and SBI co-founded SBI Ripple Asia, a joint venture aimed at delivering blockchain-based payment solutions across Asia. The collaboration deepened in 2019 when SBI’s CEO, Yoshitaka Kitao, joined Ripple’s board of directors—a symbolic move underscoring mutual trust and shared vision.
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This relationship has translated into tangible market advantages. With SBI’s extensive reach in banking, insurance, and asset management, XRP has gained credibility and integration far beyond what most altcoins experience in regulated markets.
Regulatory Clarity Gives XRP an Edge
One of the most critical factors differentiating XRP in Japan is the clear regulatory stance taken by the Japan Financial Services Agency (FSA). In 2021, the FSA officially declared that XRP does not qualify as a security under Japanese law—a decisive clarification that stands in stark contrast to the ongoing U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs.
This regulatory certainty has emboldened both institutional players and retail investors. Unlike in the United States, where uncertainty has hampered product development and exchange listings, Japanese platforms operate with confidence when offering XRP trading pairs, custody services, and investment products.
Moreover, the Bank of Japan (BOJ) has recently taken steps to explore XRP’s potential in cross-border payment infrastructure—a use case perfectly aligned with Ripple’s core technology. These developments signal strong governmental interest in leveraging blockchain for modernizing financial systems.
Why Investors Are Drawn to XRP
Several intrinsic properties make XRP an attractive option for traders and institutions alike:
- Fixed supply: All 100 billion XRP tokens were pre-mined at launch, ensuring transparency and scarcity.
- Low transaction fees: Transactions cost a fraction of a cent, making micropayments feasible.
- Fast settlement times: Transactions settle in 3–5 seconds, significantly faster than Ethereum or Bitcoin.
- Energy efficiency: Unlike proof-of-work blockchains, XRP uses a consensus protocol that consumes minimal energy.
These technical advantages position XRP not just as a speculative asset but as a functional tool for global finance—especially in a country like Japan, where efficiency and reliability are paramount.
Major Platforms Embrace XRP
Recent moves by leading Japanese companies further validate XRP’s growing ecosystem. E-commerce giant Mercari, which boasts over 20 million monthly active users, has launched Mercoin, its own digital asset initiative, and officially listed XRP on its trading platform. This makes XRP the third-largest cryptocurrency available on Mercari’s service, trailing only Bitcoin and Ethereum.
Such integrations dramatically expand XRP’s user base and utility. As more consumers engage with crypto through familiar platforms, adoption accelerates organically.
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Upcoming Financial Products Could Accelerate Growth
The momentum extends beyond Japan. In the United States, the SEC recently approved ProShares’ application for the first XRP exchange-traded fund (ETF)—a landmark development that could open the floodgates for institutional capital. While applications from Franklin Templeton, Bitwise, and 21Shares remain pending, the ProShares approval sets a crucial precedent.
Additionally, the Chicago Mercantile Exchange (CME) is set to launch XRP futures contracts on May 19, providing accredited investors with regulated exposure to price movements. These financial instruments enhance liquidity, improve price discovery, and reduce volatility over time.
Market Performance and Price Outlook
As of now, XRP trades at $2.30**, reflecting a 3.45% increase over the past 24 hours and a notable 7.28% gain over seven days. Analysts are watching key resistance levels closely, with many targeting **$3.00 as the next major milestone.
Crypto analyst Ali Martinez recently highlighted that XRP appears to be breaking out of a reverse head-and-shoulders pattern, a bullish technical formation suggesting sustained upward momentum. If confirmed, the projected price target ranges between $2.70 and $2.90, with potential for further gains if macro conditions remain favorable.
Frequently Asked Questions (FAQ)
Q: Why is XRP more popular than Ethereum in Japan?
A: XRP benefits from stronger institutional backing, clearer regulation, and deeper integration with Japan’s financial infrastructure compared to Ethereum, which faces higher fees and slower transaction speeds.
Q: Is XRP considered a security in Japan?
A: No. The Japan Financial Services Agency (FSA) has clearly stated that XRP is not classified as a security, allowing it to be freely traded and integrated into financial products.
Q: Can I stake XRP in Japan?
A: Currently, XRP is not part of official staking programs offered by exchanges like SBI VC Trade. Assets such as ETH, DOT, ADA, XTZ, and SOL are eligible for staking rewards instead.
Q: What are the upcoming catalysts for XRP?
A: Key catalysts include the launch of CME XRP futures on May 19 and potential approval of additional XRP ETFs in the U.S., both of which could boost institutional demand.
Q: How does XRP compare to Bitcoin in terms of energy use?
A: XRP is significantly more energy-efficient than Bitcoin. It uses a consensus mechanism rather than proof-of-work mining, consuming negligible electricity per transaction.
Q: Where can I buy XRP safely?
A: Reputable exchanges operating in Japan—such as SBI VC Trade and Mercari’s Mercoin—offer secure access to XRP trading with regulatory compliance.
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Final Thoughts
XRP’s rise in Japan reflects a confluence of strategic alliances, regulatory clarity, and practical utility in modern finance. While Ethereum continues to lead in decentralized applications globally, XRP has carved out a dominant niche in Asia—particularly in cross-border payments and institutional adoption.
With new financial products on the horizon—including ETFs and futures—XRP is poised for broader global acceptance. For investors seeking exposure to digital assets with real-world use cases and strong regulatory footing, XRP represents a compelling opportunity.
As Japan continues to lead in crypto innovation within traditional finance, XRP’s position as a top-tier digital asset looks increasingly secure—not just in Asia, but on the world stage.