A recent study conducted by Dr. Hossein Hassani, along with experts Xu Huang and Emmanuel Silva, has revealed that approximately 80% of Japanese banks have partnered with Ripple. More than 60 banks in Japan have embraced Ripple’s technology, showcasing a significant integration of blockchain into the traditional finance sector in the country.
Despite facing legal challenges with the U.S. Securities and Exchange Commission (SEC), which have caused some hesitation among American banks, Japanese financial institutions have remained steadfast in their support of Ripple. This unwavering commitment underscores the confidence that these banks have in the solutions provided by Ripple. Dr. Hassani’s research indicates that Japan’s banking industry is open to embracing innovative technologies to enhance their operations.
Ripple’s On-Demand Liquidity (ODL) system, now known as Ripple Payments, offers various advantages such as lower transaction costs, quicker processing times, and increased transparency. These features are in line with the global banking sector’s objectives of enhancing efficiency and customer service.
The adoption of Ripple Payments by Japanese banks reflects a broader trend in the financial industry worldwide. The move towards blockchain technology demonstrates a collective effort to modernize financial services and meet the evolving demands of a digital economy. Ripple’s success in Japan could potentially influence other markets to follow suit.
A significant partnership for Ripple is with SBI Holdings, a prominent Japanese financial conglomerate with multiple subsidiaries. Established in 2016, the collaboration between SBI and Ripple resulted in the formation of SBI Ripple Asia. This joint venture has successfully integrated Ripple’s payment infrastructure throughout SBI’s subsidiaries, facilitating seamless cross-border settlements.
Despite the ongoing legal challenges with the SEC, Japanese banks continue to embrace Ripple’s technology without hesitation. Additionally, the performance of XRP, Ripple’s digital asset, saw a slight decline to $0.524 at the time of the study, indicating a period of consolidation. However, the stability in XRP’s price suggests a steady phase for the cryptocurrency.
