- Projections suggest that XRP’s price could surpass its all-time high of $3.40 and reach $20 if adopted by Japanese banks for remittances and settlements.
- If adopted, Japanese banks could greatly benefit from XRP’s security, its stablecoin RLUSD, the XRPL, and its fast transaction speeds.
As we reported on January 1, the adoption of Ripple by Japanese banks has been a hot topic in the cryptocurrency space. SBI Holdings, one of Japan’s most prominent financial institutions, has consistently supported Ripple’s On-Demand Liquidity (ODL) product and its native digital asset, XRP.
SBI has integrated Ripple’s technology into various financial services, especially for cross-border payments. Through its joint venture, SBI Ripple Asia, the company promotes RippleNet to financial institutions and money transfer operators in Japan, South Korea, and parts of Southeast Asia. Yoshitaka Kitao, SBI’s CEO, has frequently expressed confidence in XRP’s potential role within the banking industry, emphasizing its utility for international remittances.
There have been claims that Kitao projected up to 80% of Japanese banks would integrate XRP in 2025. However, there is no official confirmation supporting this assertion. In a recent development, SBI Remit Co Ltd. and SBI Shinsei Bank, entered into a customer referral partnership and began offering services.
As a leading international remittance provider under SBI Japan, SBI Remit has continuously explored Ripple’s distributed ledger technology, indicating the potential use of XRP or RLUSD to improve financial transaction efficiency.
Japan’s financial ecosystem is vast, with trillions of dollars circulating daily. The Bank of Japan oversees the nation’s $4.23 trillion GDP, while major banks like Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho handle billions in transactions. Notably, Mitsubishi UFJ serves 40 million retail customers, while Mizuho provides services to approximately 24 million individual clients.
A study by industry researchers Hossein Hassani, Xu Huang, and Emmanuel Silva examined how blockchain technology could help overcome challenges in the financial sector, particularly in banking. The study highlights several benefits of blockchain for banking, including improved KYC processes, faster and more efficient cross-border payments, enhanced security through immutability, and cost reductions by minimizing reconciliation expenses.
XRP Price Prediction
If Japanese banks integrate XRP into their cross-border payment systems, the digital asset’s price could see a significant increase. Given the size of Japan’s banking sector, even a small adoption could have a substantial impact on XRP’s value. The XRP Ledger’s efficiency and cost-effectiveness make it a perfect solution for international remittances.
Analysts predict that if just 1% of the global market adopts XRP, its market capitalization could increase by around $63.72 billion, pushing the price of the digital asset to approximately $3.50. This relatively small adoption rate could have a remarkable effect on XRP’s value, highlighting the significant impact that even minor shifts in adoption can have on its price. Furthermore, a 10% adoption rate could push XRP’s value to about $13.50, with the potential for prices to eventually soar into the $50 to $100 range as adoption continues to grow.
In recent market activity, XRP has seen a slight downturn. Over the past week, its price has increased by 2.78%, reaching $2.43, but in the last 24 hours, it experienced a 1.96% decrease. Despite these short-term fluctuations, the long-term outlook for XRP remains positive, driven by its potential to reshape the future of global payments.
