Japan’s Biggest Banks Launch XRP Buyback – Is This the "Next-Gen Settlement Standard"?
- Samantha
- Jul 21, 2025
- 3 min read
In a dramatic turn for the global financial landscape, Japan's top banks—led by SBI Holdings—are reportedly preparing to launch an XRP buyback initiative, potentially marking a new chapter in blockchain-based settlements. This move stems from a proposal made by GAM’s Global Special Situations Fund, a major activist investor, which argued that SBI should begin repurchasing XRP tokens instead of issuing traditional cash dividends.
According to GAM, SBI’s XRP holdings are worth an estimated ¥1.6 trillion, even higher than the company’s own market valuation of ¥1.2 trillion. The fund insists that a buyback could unlock massive shareholder value while showcasing XRP as a major financial asset. Their proposal also calls for SBI to publicly disclose its XRP balance daily and outline a more transparent crypto investment strategy.
Japan’s XRP Integration: 80% Bank Adoption in Sight?
Beyond the buyback talk, XRP adoption is heating up in Japan. Recent reports suggest that up to 80% of Japanese banks are exploring RippleNet and XRP integration by the end of 2025. Although the exact figure remains unofficial, it's clear that Ripple's technology is gaining strong traction across the nation's financial sector.
This movement is being led by SBI CEO Yoshitaka Kitao, a longtime XRP advocate. Kitao has repeatedly emphasized XRP’s role in global payments, claiming it has far more real-world utility than speculative assets like Bitcoin. Under his leadership, SBI has already partnered with Ripple for multiple blockchain pilot programs focused on remittances and cross-border settlements.
XRP Buyback: A Game-Changer for Value and Liquidity?
If implemented, the XRP buyback could have several major implications. First, by reducing the circulating supply of XRP, such a move might drive up the token’s market value. Second, it would validate XRP as a serious asset class used not only for speculation but also for institutional liquidity, settlements, and remittances.
The timing could also be strategic. Ripple’s On-Demand Liquidity (ODL) system is already being used in regions like the Philippines and Mexico, helping financial institutions eliminate the need for pre-funded accounts. A large-scale rollout in Japan would push XRP further toward becoming a global bridge currency.
The Challenges: Regulation, Adoption, and Competition
Despite the optimism, several challenges remain. First, there is no formal confirmation yet that the XRP buyback has been approved by SBI. GAM’s proposal is under review, but official timelines or announcements have not been made.
Second, the widely cited “80% adoption” figure may be overstated. Analysts on crypto forums and media outlets have noted that some of these numbers are speculative, based on internal intentions rather than signed partnerships. Moreover, integration at this scale would require significant infrastructure upgrades, especially to comply with ISO 20022 messaging standards, which Japan plans to implement fully by late 2025.
Third, XRP faces heavy competition. Other blockchain solutions like Ethereum, Solana, and stablecoins such as USDC are vying for the same role in settlements and payments. Additionally, central bank digital currencies (CBDCs) could soon become dominant players in regulated financial systems.
The Bigger Picture: Is XRP the "Next-Gen Settlement Standard"?
Japan’s XRP pivot could signal the beginning of a paradigm shift. If the buyback goes ahead and RippleNet sees broad adoption across Japanese banks, XRP could become a de facto standard for real-time, cross-border settlements. This would not only boost Ripple’s profile but also reshape how financial institutions around the world move money.
Still, much depends on regulatory clarity, execution timelines, and how fast Japanese banks adopt Ripple’s ecosystem. The financial world is watching closely. The next few months—particularly any public statement from SBI Holdings—will be critical in determining whether this vision becomes reality.
