XRP has taken the spotlight in Japan, surpassing Ethereum (ETH) in popularity among investors. According to recent data, XRP now holds an 18% share of all tokens stored on Japanese exchanges. Meanwhile, Ethereum trails behind with a 14.4% share.
Bitcoin Still Leads, But XRP Gains Ground
Bitcoin remains the dominant cryptocurrency in Japan, accounting for 65% of total exchange holdings. Despite the growing number of altcoins, Bitcoin’s dominance continues to expand. However, XRP’s strong presence in Japan has helped it outperform Ethereum, solidifying its position as the second-most held cryptocurrency in the country.
Ripple’s Strong Ties to Japan
XRP’s success in Japan is no accident. Ripple has maintained strong partnerships with major financial institutions in the country for years. In 2016, Japanese financial giant SBI joined forces with Ripple to create SBI Ripple Asia. This move significantly boosted XRP’s adoption in the region.
SBI’s CEO, Yoshitaka Kitao, later joined Ripple’s board of directors in 2019, further strengthening ties between the two entities. The partnership has been instrumental in XRP’s growth, helping it gain trust and recognition among Japanese investors.
Regulatory Clarity Boosts XRP’s Popularity
Japan’s clear regulatory stance on XRP has also played a crucial role in its success. In 2021, Japan’s financial watchdog confirmed that XRP was not classified as a security. This decision came at a time when Ripple was facing a legal battle with the U.S. Securities and Exchange Commission (SEC). While the U.S. struggled with regulatory uncertainty, Japan provided a favorable environment for XRP’s growth.
Expansion Beyond Japan
XRP’s dominance is not limited to Japan. The cryptocurrency has also gained traction in South Korea, another major hub for crypto trading. South Korean traders were key drivers of XRP’s massive rally in late 2024, showcasing the coin’s growing influence across Asia.
Ripple has continued expanding in the region, launching a new fund last year to promote blockchain innovation in Japan and South Korea. Additionally, SBI Group recently became the first company in Japan to integrate XRP Ledger, a move that further solidifies XRP’s role in the country’s financial ecosystem.
What’s Next for XRP in Japan?
With strong institutional support, regulatory clarity, and increasing adoption, XRP’s dominance in Japan is likely to continue. As Ripple deepens its partnerships and expands its initiatives, XRP could strengthen its position even further. While Bitcoin remains king, XRP has proven that it can carve out its own space in the Japanese market, leaving Ethereum in its wake.
