Ripple is directing a coordinated push to increase on-ledger activity on the XRP Ledger (XRPL) by partnering with major Japanese banks and ecosystem firms. The effort centers on the Japan Financial Infrastructure Innovation Program (JFIIP), backing from Mizuho Bank and SMBC Nikko, and a planned enterprise-grade stablecoin, RLUSD, with SBI Holdings — moves intended to shift institutions from messaging rails toward native XRPL utility.
This initiative emphasizes institutional-grade infrastructure, regulatory alignment, and product rollouts aimed at accelerating compliant, XRPL-native use cases in Japan. It positions banks and ecosystem partners to expand beyond messaging into direct settlement, tokenization, and stablecoin-driven flows on XRPL.
Ripple’s strategy enlists Japanese incumbents to incubate compliant XRPL use cases. The JFIIP accelerator, supported by Mizuho and SMBC Nikko, funds startups building institutional-grade applications on XRPL, providing capital, advisory input and regulatory orientation; this is intended to ensure new solutions meet bank operating and compliance standards, according to Longbridge coverage.
SBI Holdings is a named distribution and integration partner for RLUSD, an enterprise stablecoin Ripple plans to launch in Japan in early 2026, a development reported by industry outlets. Securitize Japan and tokenized US Treasury initiatives such as Ondo Finance’s OUSG and OpenEden are cited as examples of tokenization partners that could bring real-world assets (RWAs) onto XRPL, broadening on-ledger transaction types beyond payments.
The established joint venture SBI Ripple Asia is highlighted as a practical channel for bank consortium engagement, including pilots that consider XRP for liquidity and shareholder benefit programs. Japan’s regulatory environment, described as comparatively clear by the analysis, is presented as a permissive backdrop that lowers legal friction for banks pursuing compliant on-ledger products.
Market implications and operational risks for Ripple
If banks move from RippleNet messaging to on-ledger XRPL settlement, the ledger should see higher transaction volumes and more complex flows tied to stablecoins and tokenized assets. Industry projections cited in media place potential widespread integration as early as 2025, with one estimate suggesting up to 80% of Japanese banks could adopt Ripple solutions by then; that projection could not be independently verified and should be treated cautiously.
For traders and institutional managers, operational consequences include increased settlement velocity and on-chain liquidity, new demand for custody and compliance services, and potential flow risk around stablecoin mint/redemption windows. Banks’ use of ODL to eliminate pre-funded accounts could materially reduce capital tied in correspondent banking, altering FX and funding dynamics for JPY and USD corridors.
These shifts create hedging and basis considerations for desks that execute cross-border FX and stablecoin liquidity provision.
Ripple’s Japan-focused program packages institutional backing, regulatory alignment and product launches to push XRPL from messaging adjunct to primary settlement layer.
