Our last two editions of Crypto Finance Asia have focused on the cryptocurrency XRP and its blockchain XRP Ledger, developed by the US-based technology company Ripple Labs. The firm uses XRP and its stable coin RLUSD to facilitate cross-border payments and other financial transactions on its platform. Ripple / XRP is at the forefront of blockchain-enabled finance and is tapping a market measured in the trillions of dollars. Think of Ripple as being on the verge of replacing traditional cross border payment systems such as SWIFT (which uses technology from the 1960s). It offers real time settlement, regulatory compliance, and already has wide geographic coverage covering six continents.
After securing deals in the UAE –one of the world’s largest cross-border payment hubs – Ripple is now eyeing Japan expansion to boost XRP adoption amid rising regional demand. The firm is reportedly eyeing a license in Japan to allow XRP for banking payments. According to one media report on the matter:
“Ripple [has] provided a detailed outline of its plan to unlock innovation in Japan, including offering grant funding of up to $200,000 per project over the next year. The latest developments follow the increasing adoption of XRP, with the support of SBI Holdings, to enable fast and low-fee cross-border transactions.”
Grants for start-ups
Ripple’s grant funding will target early-stage startups in Japan working on XRPL-based solutions aimed to foster projects in key areas such as DeFi, tokenized real-world assets (RWA), and digital payments.
Ripple’s rise
Ripple / XRP is gaining strong institutional traction due to its use case of solving real world problems in the traditional finance space. Recently, two Nasdaq-listed corporations, VivoPower and Webus, have announced plans for capital raises in the hundreds of millions of dollars to acquire XRP for their corporate treasuries. Not only do these firms see the value of XRP as a long-term appreciating asset, they plan to incorporate XRP to streamline cross-border payments and boost transparency across their operations. It’s a high risk move, but if Ripple / XRP even just modestly succeeds in transforming how the world moves money, it will pay off massively.