Japanese Investors Preferring XRP over Bitcoin: The Great Exodus

Japanese Investors Preferring XRP over Bitcoin: The Great Exodus

The Growing Preference for Ripple’s XRP in Japan’s Crypto Market

A recent study has shed light on the increasing popularity of Ripple’s XRP among Japanese investors, surpassing the world’s leading cryptocurrency, Bitcoin. While Ripple and XRP face scrutiny and regulatory challenges in the United States, Japan seems to have a more welcoming stance towards this digital asset, as revealed in a research paper by the Department of Economics and Finance at the City University of Hong Kong.

XRP Over Bitcoin and Ethereum

According to the research report, the XRP token has gained significant favorability over Bitcoin and Ethereum, which are the largest cryptocurrencies by market capitalization. The study refers to a survey conducted by BITMAX, a prominent Japanese crypto exchange, in which 1,498 respondents participated. Surprisingly, 25% of the respondents chose XRP as their preferred cryptocurrency, while Bitcoin and Ethereum received preferences from 26% and 9% respectively.

Although this survey alone may not be entirely definitive, it does indicate a considerable following and interest in XRP among Japanese investors. It is worth noting that XRP also recorded the highest spot trading volume in February of the previous year, with an impressive “nearly 1.36 billion units” traded during that period.

The report attributes this enthusiasm for XRP in Japan to the country’s customs and the confidence that its largest venture capital fund, SBI Holdings, has in Ripple. SBI Holdings, being one of Ripple’s early partners, made a substantial investment of approximately $300 million in Ripple back in 2017.

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SBI Holdings: A Primary Driver of Ripple’s Success in Japan

The research report emphasizes SBI Holdings as the primary force behind Ripple’s success in Japan, which is a plausible assertion considering the company’s instrumental role in helping Ripple establish a presence in the Japanese market.

In collaboration with Ripple, SBI Holdings formed SBI Ripple Asia in 2016, aiming to provide cross-border payment services to banks across Asia. Utilizing Ripple’s distributed ledger technology (DLT), this partnership enabled the processing of cross-border transactions in 40 currencies and more than 70 countries.

SBI Ripple Asia primarily targeted banks in Japan, China, South Korea, and other Southeast Asian countries, enabling Ripple and XRP to gain early traction in the Asian market. This was especially advantageous as non-cash payments were on the rise in these countries during the same time frame.

Furthermore, SBI Holdings’ subsidiary, SBI Remit, expanded the SBI Ripple Asia partnership by introducing an XRP-based international remittance service for banks in the Philippines, Vietnam, and Indonesia. As a result, Ripple and XRP’s adoption in the Asian region is expected to further increase. The partnership aligns with Ripple’s overarching objective of disrupting the global financial system, as the XRP token acts as a bridge currency for individuals abroad wishing to send money to their families back home.

Notably, Ripple’s Ledger platform enables these transactions to be processed faster and at a lower cost compared to traditional financial systems.

Token price resting at $0.49 | Source: XRPUSD on Tradingview.com

Conclusion

The preference shown by Japanese investors for Ripple’s XRP over Bitcoin and Ethereum highlights the growing significance of this cryptocurrency in Japan’s crypto market. Factors such as SBI Holdings’ major investments and collaborations have played a pivotal role in Ripple’s success and adoption in the country.

As Ripple and XRP continue to gain traction and expand their reach in Asia and beyond, they are positioned to disrupt traditional financial systems and offer faster, more cost-effective cross-border payment solutions. With its solid foundations and partnerships, Ripple’s XRP is cementing its place as a leading player in the blockchain industry, capturing the attention and trust of investors worldwide.

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