Why Japan’s SBI Bank Bet Big on XRP – Should You Join the Ride?

SBI Holdings, a leading Japanese financial services group, has been a vocal proponent of blockchain and cryptocurrency since the mid-2010s. In 2016, SBI invested in Ripple Labs, securing a 9% stake and becoming its largest external shareholder. That same year, SBI and Ripple established SBI Ripple Asia, a joint venture aimed at promoting blockchain-based payment solutions across Asia. This partnership has been instrumental in integrating XRP into Japan’s financial infrastructure, with SBI Holdings’ CEO, Yoshitaka Kitao, repeatedly emphasizing the potential of XRP for international remittances.

Over the years, SBI has expanded its involvement in the XRP ecosystem, including operating validator nodes on the XRP Ledger and issuing NFTs for events like EXPO 2025 Osaka, further embedding XRP into its operations. This historical context highlights SBI’s strategic alignment with XRP, positioning it as a key driver of adoption in Japan.

Key Points

• SBI Bank, part of SBI Holdings, has significantly invested in XRP, with 80% of Japanese banks set to adopt it by 2025, suggesting strong institutional support.
• Recent developments include SBI considering an XRP buyback program and investing $50 million in Circle, indicating a broader crypto strategy.
• The evidence leans toward increased XRP adoption boosting its value, but risks like market volatility and regulatory uncertainties remain.
• Investors should approach with caution, as the crypto market is complex and outcomes are uncertain.

Recent Developments: SBI’s Bold Moves in 2025

As of June 2025, several developments have amplified SBI’s bet on XRP. Firstly, reports indicate that nearly 80% of Japanese banks are set to integrate XRP by the end of 2025, a move that could transform the cryptocurrency’s utility and value.

Additionally, SBI Holdings is considering an XRP buyback program, a strategy aimed at aligning XRP’s market capitalization with its actual value held by SBI. This approach, inspired by companies like MicroStrategy with Bitcoin, could help stabilize XRP’s price and increase liquidity. The buyback is intended to absorb selling pressure and enhance stability, though it may cause short-term price swings of 30-50%, settling back after a few months. However, its sustainability depends on sustained demand, with XRP currently lacking the demand seen in competitors like Ethereum and Solana.

In another significant move, SBI Holdings and SBI Shinsei Bank invested $50 million in Circle Internet Group, Inc., coinciding with Circle’s NYSE listing on June 5, 2025. Circle, known for its stablecoin USDC, saw its stock open at USD 69 and close at USD 83, marking a 200% increase. This investment, while primarily in stablecoins, underscores SBI’s broader commitment to the cryptocurrency market, which indirectly supports its XRP holdings. SBI’s collaboration with Circle includes plans to establish Circle SBI Japan KK for USDC adoption in Japan, further integrating stablecoins into its ecosystem.

Below transaction also highlight SBI’s activities, such as moving 39.93 million XRP for liquidity management and ODL services amid rising demand in Japan, signaling bullish momentum.

Potential Growth and Market Impact

The increased adoption of XRP by Japanese banks and SBI’s strategic investments could have profound implications for the cryptocurrency. With more banks using XRP for cross-border payments, the demand for the asset is likely to rise, potentially driving up its price. Analysts are optimistic, with some predicting XRP could reach $10 by 2025, fueled by institutional interest and potential regulatory clarity.

SBI’s buyback program, if implemented, could further stabilize and elevate XRP’s market value, signaling traction in digital currencies and potentially inspiring other financial institutions to adopt crypto payments. This could boost confidence in XRP and foster broader adoption, positioning it at the forefront of blockchain technology for international finance.

Read more: Ripple SEC Settlement Talks Reignite Bullish Sentiment Around XRP

Risks and Considerations

However, investing in XRP, like any cryptocurrency, comes with inherent risks. The crypto market is known for its volatility, and XRP is no exception. Prices can fluctuate wildly, and while SBI’s buyback might provide some stability, it’s not a guarantee against downturns. For instance, the buyback strategy could cause short-term price swings of 30-50%, settling back after a few months, which may deter risk-averse investors.

Regulatory uncertainties also loom large. While Japan has been relatively crypto-friendly, other jurisdictions may impose stricter regulations that could impact XRP’s usability and value. Security risks, such as hacking and market manipulation, add another layer of complexity, with potential liquidity concerns and lack of investor protections further complicating the landscape.

Moreover, the success of SBI’s strategy depends heavily on the overall demand for XRP. If adoption doesn’t meet expectations, the buyback program might not be sustainable, leading to potential losses for investors. Compared to competitors like Ethereum and Solana, XRP currently lacks the fundamental demand needed for long-term growth, which could limit its upside potential.

Should You Join the Ride?

Given these developments, SBI Bank’s big bet on XRP presents a compelling opportunity but also significant risks. For investors, the decision to join the ride should be approached with caution. The evidence leans toward increased adoption boosting XRP’s value, particularly with institutional backing from Japanese banks and SBI’s strategic moves. However, the volatile nature of the crypto market and regulatory uncertainties mean outcomes are far from certain.

Potential investors should consider their risk tolerance and investment horizon. Those with a high risk appetite and a long-term view might see SBI’s commitment as a bullish signal, especially given the potential for XRP to reach $10 by 2025. However, for those wary of volatility, alternative investments with more stable fundamentals might be preferable. Keeping an eye on developments from SBI and other industry leaders will be crucial for making informed decisions. The current XRP price and charts can be tracked below.

Finally,

SBI Bank’s massive investment in XRP, driven by its partnership with Ripple and recent strategic moves, is reshaping the crypto narrative. With 80% of Japanese banks set to adopt XRP by 2025 and SBI exploring buybacks and stablecoin integrations, the future looks promising but uncertain. Investors must weigh the potential for growth against the risks of volatility and regulation, ensuring they approach with a balanced and informed perspective. As the landscape evolves, SBI’s role in XRP’s journey will undoubtedly remain a focal point for the global crypto community.