Ripple’s Game-Changing Move: Japan’s Banking Giants Embrace XRP Ledger in Landmark Partnership

Japan's financial fortress just opened its gates to blockchain—and the key is XRP.

The Institutional Stamp of Approval

Forget speculative hype. This isn't about moonboys or memes. Ripple just secured partnerships with Japan's top-tier banks—the same institutions that move trillions in traditional finance. They're not dabbling; they're integrating. The XRP Ledger gets woven directly into Japan's banking backbone, handling cross-border settlements that used to take days and cost a fortune.

Why This Cuts Through the Noise

Japan's financial regulators, the FSA, are notoriously strict. Their blessing here isn't just a nod—it's a seismic shift in legitimacy. These banks aren't experimenting with a side project; they're deploying enterprise-grade infrastructure. It bypasses the old SWIFT corridors, slashing fees and settlement times from days to seconds. Real utility, not just another whitepaper promise.

The Ripple Effect Beyond Borders

Watch Asia. When Japan's banking elite moves, the region follows. This creates a blueprint for other regulated markets—a template for how traditional finance can adopt blockchain without blowing itself up. It pressures other global banks still clinging to legacy systems. Adapt or get left watching transactions settle in real-time on someone else's ledger.

The Bottom Line

This partnership shreds the old narrative that crypto and banking exist in separate worlds. It's a masterclass in regulatory navigation and institutional adoption. One cynical take? The same banks that once dismissed crypto now need it to stay competitive—nothing drives innovation like the fear of becoming obsolete. The future of finance isn't coming; it's already settling transactions.

Japan’s financial giants to save XRPL from collapse

Mizuho Bank’s involvement will give Ripple’s plan more legitimacy and scale. This restores faith in the XRP Ledger’s ability to handle real-world use cases like cross-border payments and managing liquidity.

🔥Big moves in Japan! 🇯🇵 @Ripple just confirmed collaborations with financial giants Mizuho Bank, SMBC Nikko, and Securitize Japan.

We aren't just talking about payments anymore, we're talking tokenized securities and real-world assets on the #XRPL. 🏦🔗

Institutional DeFi -…

— PaulBarron (@paulbarron) January 5, 2026

SMBC Nikko, the investment banking arm of Sumitomo Mitsui Financial Group, will reinforce the momentum by linking blockchain infrastructure with DEEP capital markets expertise. 

Securitize Japan will add a tokenization LAYER to the XRP Ledger, while also expanding its functions to include full-stack financial infrastructure.

Christina Chan, the senior director of developer growth at RippleX, stated, “Japan offers an overwhelming opportunity for blockchain innovation, supported by a forward-thinking regulatory framework and deep talent pool.”

The collaboration is expected to do the XRP ledger some good as data from DefiLlama reveals that the Total Value Locked (TVL) on the XRPL has crashed from a July peak of $120 million to just $62 million. The 50% drop indicates liquid capital is leaving the network’s DeFi protocols.

In the race for asset tokenization, the XRPL currently ranks ninth globally with approximately $213 million in assets. It lags far behind market leaders like ethereum and newer Layer-1 competitors that have scooped the lion’s share of the RWA market in 2025.

Japan positions itself to embrace crypto

Ripple’s move follows Japan’s 2026 tax reform blueprint, which implemented a significant crypto tax reduction to a flat 20%. Crypto asset gains in the nation were previously subject to taxation of up to 55%.

According to reports, the shift in taxes will categorize cryptos under a separate framework. This is expected to pave the way for possible application of separate taxation to gains from spot crypto trading, derivatives transactions, and crypto-related exchange-traded funds (ETFs).

For losses incurred from buying and selling VIRTUAL currencies, a three-year carryover deduction system will be implemented. This means that the losses can be carried forward and deducted for three years from 2026.

Japan is opening the door to crypto-linked investment trusts and expanding its ETF ambitions. After launching its first XRP ETF, the country is reportedly exploring additional funds that track approved digital assets.

Meanwhile, as reported by Cryptopolitan, Japanese Minister of Finance Satsuki Katayama has committed to providing formal assistance to integrating crypto into the nation’s existing financial infrastructure. She praised crypto exchanges as key institutions of the interaction between investors and digital, blockchain-based assets. 

XRP surges  on ETF inflows, Middle East regulatory approval

Ripple’s XRP is up 4.6% in the last 24 hours, extending a 17.6% weekly gain. XRP’s rally is attributed to the deepening Asian liquidity pools and ETF-driven institutional bids. 

Ripple’s stablecoin RLUSD gained approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) and Dubai Financial Services Authority (DFSA). This follows Ripple’s expanded MPI license in Singapore, deepening its Asia-Pacific region (APAC) and Middle East North Africa (MENA) payment corridors.

US spot XRP ETFs also recorded $13.6 million in inflows on Sunday. ETF holdings now equal 6.9% of XRP’s circulating supply.  

Meanwhile, XRP also achieved a liquidity score of 678 on Upbit, with a $207 million volume, accounting for 17.17% of the exchange’s total. This reflects concentrated Asian trading activity favouring XRP’s utility for payments. The coin is now trading at $2.18.

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