XRP Ledger Positioned At The Heart Of Japan’s Next Financial Transformation

[Ben Graham]

With a strong regulatory environment, proactive institutional participation, and a growing appetite for blockchain-powered financial solutions, Japan is positioning itself at the forefront of next-generation finance, and XRPL is increasingly becoming central to that vision.

Japan is placing a huge bet on the XRP Ledger identity and leading protocol. Crypto analyst Stellar Rippler revealed on X that a senior banker from the Bank of Japan (BoJ), Kazuo Ueda, reportedly stated that SBI holdings has invested in XRP, XRP Ledger-native identity protocols, compliance, and lending projects. Meanwhile, that backdrop became even more significant when SBI Holdings CEO Yoshitaka Kitao said the firm holds hidden assets worth more than its officially disclosed 9% stake, which is valued at over $10 billion.

Why Japan Is Looking Beyond Payments To XRPL Infrastructure

Interestingly, the strategic direction becomes clearer when viewed through the lens of identity. Ripple’s president, Monica Long, has described decentralized identity on XRPL as a way to turn personal information into a secure, portable digital token that users can carry globally and selectively share, replacing reliance on centralized platforms.

Related Reading: XRP Ledger DEX Metrics Flash Strong Growth As Activity Touches New Key Levels

This vision is already taking shape at the infrastructure level. DNAOnChain’s XDNA applies this model with zero-knowledge proofs to transform identity and compliance data into verifiable zk-credentials. Also, these allow institutions to confirm eligibility and regulatory status without exposing sensitive information. However, the SBI’s hidden asset has extended beyond XRP, and it’s pointing toward the XRPL’s identity and zero-knowledge credential layer, where XDNA fits in as the infrastructure institutions needed.

XRP is actively used as a bridge currency for liquidity on the XRP Ledger, alongside stablecoins, which are complementary. An analyst known as Vet on X has noted that recent activity on the XRPL DEX shows that RLUSD is being exchanged for EUROP, a euro-denominated stablecoin, with XRP acting as the bridge asset. By serving as an intermediary layer, XRP increases the liquidity of issued assets across the network.

Furthermore, this design results in a proven, robust financial infrastructure that maximizes capital efficiency for everyday users and institutions. At the same time, market makers can make markets between the respective XRP pairs; they can hold the token because it is counterparty-free, which makes it the most efficient way to make markets.

The Role Of The XRP In A Tokenized FX Future

According to RippleBullWinkle, founder of Lux Lions NFT, the global foreign exchange market is moving roughly $9.6 trillion in daily volume.

In the meantime, industry insiders are projecting an on-chain FX system for local currency stablecoins from countries around the world, in which they can settle directly on-chain against the dollar stablecoins. This is where XRP’s original design becomes relevant, because XRP was literally built to function as a bridge asset between currencies.