In recent assessments of the XRP cryptocurrency, discussions have focused on its potential price surge if all banks in Japan began leveraging its bridge capabilities for banking operations. Currently trading around the $2 mark, many market participants argue that XRP’s price does not accurately reflect its long-term utility and potential for broader adoption among major financial institutions.
Japan’s banking sector stands out as one of the largest globally, anchored by three prominent megabanks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. These institutions are complemented by a network of regional banks and shinkin cooperative banks. As of November 2024, data from the Bank of Japan indicated that domestically licensed banks had amassed approximately 1,447 trillion yen in total assets, equivalent to about $9.65 trillion. By early February 2025, total deposits reached around 1,047 trillion yen ($6.98 trillion)—a 1.4% increase year-on-year.
Although growth in deposits appears to have slowed by late 2025, estimates suggest that they could rise to between 1,060 and 1,070 trillion yen, marking an annual growth rate of about 1.5%. As for ordinary and time deposits, the figures stood at roughly 650 trillion yen and 225 trillion yen, respectively, as of February 2025. Loan-to-deposit ratios varied by type of bank, with major banks at about 40% to 50%, regional banks at 50% to 60%, and shinkin banks ranging from 60% to 70%. Moreover, securities holdings constituted around 300 to 350 trillion yen, roughly 40% of total assets.
The sheer scale of Japan’s banking sector—home to around 100 city and regional banks, 250 shinkin banks, and approximately 13,500 domestic branches—indicates that implementing XRP as a bridge asset for settlements could significantly impact its price. To explore this potential, a recent inquiry to the Google Gemini platform estimated XRP’s market capitalization near $120 billion at its current price. When compared to the staggering $9.65 trillion in assets held by Japanese banks, the model suggested that if XRP’s market cap reached 10% of this asset base, it could soar to around $965 billion.
By dividing this figure by XRP’s circulating supply, the hypothetical price per token could rise to approximately $16.08, representing an 800% increase over its current valuation. However, Google Gemini has noted that such a scenario remains speculative, as settlement assets typically do not equate to bank balance sheet totals. Furthermore, XRP would likely serve to enhance liquidity and transaction flows rather than directly represent an asset.
XRP has already established a foothold in Japan’s financial landscape. In 2016, Ripple partnered with SBI Holdings to create SBI Ripple Asia, a joint venture aimed at promoting Ripple’s payment solutions in the region. That same year, SBI Holdings invested in Ripple’s $55 million Series B funding round and brought Mizuho Financial Group into Ripple’s network.
In 2017, SBI Ripple Asia launched the Japan Bank Consortium, uniting 61 banks that together accounted for over 80% of Japan’s banking assets. Pilot programs utilizing Ripple’s RC Cloud platform enabled real-time settlements for numerous banks, paving the way for future XRP liquidity applications. By 2018, SBI had also introduced VCTRADE, Japan’s first bank-backed cryptocurrency exchange, with XRP as its focal point. In 2021, SBI Remit launched Japan’s inaugural XRP-powered international remittance service, leveraging Ripple’s On-Demand Liquidity for faster and more cost-effective transfers between corridors, such as Japan and the Philippines.
This analysis indicates an optimistic outlook for XRP if it continues to forge relationships with Japan’s financial institutions, suggesting that larger adoption could herald significant price increases in the future. Readers are encouraged to conduct their own research before making any investment decisions. This content is informational and should not be construed as financial advice.
