The digital asset market witnessed a significant spike in XRP’s value on Wednesday, with the cryptocurrency surging over 16% following the announcement of a major cross-border payment initiative in Japan. Ripple has partnered with Japanese financial giant SBI Remit and Philippine-based crypto exchange Coins.ph to launch On-Demand Liquidity (ODL) services on RippleNet — marking the first live implementation of ODL in Japan using XRP for foreign exchange settlements.
At the time of writing, XRP was trading at $0.70, according to CoinGecko data, reflecting strong market confidence in the new development.
A Milestone for RippleNet and ODL Adoption
This strategic collaboration represents a pivotal moment for Ripple’s global expansion, particularly in Asia. SBI Holdings, a major investor and shareholder in Ripple, confirmed that its subsidiaries — SBI Remit and SBI VC Trade — have jointly launched what they are calling Japan’s first international remittance service powered by digital assets.
SBI Remit has been leveraging RippleNet since 2017, utilizing the blockchain-powered network that connects banks, payment providers, and financial institutions worldwide. The platform enables near-instant cross-border transactions at minimal cost compared to traditional banking rails.
With the integration of ODL, the process becomes even more efficient. Instead of relying on pre-funded accounts in destination countries — a costly and capital-intensive requirement for most remittance providers — ODL uses XRP as a bridge currency to settle payments instantly.
👉 Discover how blockchain is transforming global remittances today.
How the Japan-Philippines Corridor Works
The new payment corridor connects Japan and the Philippines, two nations with deep financial ties. According to Ripple, Filipinos form the third-largest foreign community in Japan, and in the past year alone, they sent approximately $1.8 billion back home.
Under this new model:
- A customer initiates a transfer via SBI Remit in Japan.
- SBI VC Trade purchases XRP and sends it instantly across RippleNet to Coins.ph, a Central Bank of the Philippines-regulated digital wallet and crypto exchange.
- Coins.ph converts the XRP into Philippine pesos and delivers funds to the recipient — all within seconds.
This end-to-end process eliminates the need for pre-funding local accounts, reduces liquidity costs, and accelerates settlement times from days to seconds.
“Expanding our partnership allows SBI Remit to connect seamlessly with Coins.ph and SBI VC Trade on RippleNet, enabling faster and more affordable remittances between Japan and the Philippines.”
This innovation not only improves user experience but also unlocks capital for financial institutions, allowing them to redeploy funds previously tied up in dormant overseas accounts.
Why This Matters for Cryptocurrency Adoption
The launch of ODL in Japan is more than just a technical upgrade — it's a foundational step toward mainstream cryptocurrency adoption in one of the world’s most regulated and tech-savvy financial markets.
Japan has long been recognized for its progressive stance on digital assets, but high cross-border transaction fees have remained a persistent challenge. By integrating XRP into real-world financial infrastructure, Ripple and SBI are demonstrating how blockchain technology can solve tangible economic inefficiencies.
Moreover, this deployment reinforces XRP’s utility as a tool for institutional finance rather than just a speculative asset. Unlike many cryptocurrencies without clear use cases, XRP serves a functional role in facilitating fast, low-cost international transfers.
Regulatory Tailwinds Boost Market Confidence
Ripple’s recent legal victories in its ongoing case against the U.S. Securities and Exchange Commission (SEC) have further strengthened market sentiment. The company successfully argued that XRP is not a security when sold to retail investors, setting an important precedent for the broader crypto industry.
Executives from both Ripple and SBI have publicly stated that a favorable resolution of the SEC lawsuit could pave the way for Ripple to go public in the future. Brad Garlinghouse, CEO of Ripple, and Yoshitaka Kitao, CEO of SBI Group, remain optimistic about the company’s long-term trajectory.
👉 See how institutional adoption is reshaping the future of finance.
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Frequently Asked Questions (FAQ)
Q: What is On-Demand Liquidity (ODL)?
A: ODL is Ripple’s blockchain-based solution that uses XRP as a bridge currency to enable instant cross-border payments without requiring pre-funded accounts in foreign currencies.
Q: Why did XRP price rise after this announcement?
A: The launch marks a major real-world application of XRP in a developed economy like Japan. Increased utility and institutional adoption typically drive investor confidence and demand.
Q: Is this service available to all Japanese customers?
A: Initially focused on remittances to the Philippines, the service is accessible through SBI Remit. Expansion to other corridors may follow based on performance and demand.
Q: How does ODL reduce costs for money transfer companies?
A: By eliminating the need to pre-fund accounts abroad, ODL frees up capital that would otherwise sit idle, reducing operational costs and increasing scalability.
Q: Can individuals buy XRP to use this service directly?
A: No — end users send fiat currency through SBI Remit. The use of XRP happens behind the scenes between institutional partners and is invisible to customers.
Q: What makes the Japan-Philippines corridor significant?
A: It’s a high-volume remittance route with strong demand. Success here can serve as a blueprint for expanding ODL to other Southeast Asian markets.
As blockchain continues to disrupt traditional finance, initiatives like this underscore the growing role of digital assets in solving real economic challenges. With regulatory clarity improving and strategic partnerships expanding, Ripple’s vision of a frictionless global payment system is moving closer to reality.
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