The cryptocurrency world was rocked in late 2020 when major U.S. exchanges, including Coinbase and OKCoin, announced the suspension of XRP trading and deposits—triggering a sharp decline in the digital asset’s price. With XRP dropping nearly 20% in 24 hours, many investors and platforms began distancing themselves from the token linked to Ripple Labs. However, amid global hesitation, one powerful financial institution has stepped forward with a clear and confident endorsement: Japan’s SBI Holdings.
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SBI Holdings Affirms XRP’s Legal Status in Japan
In a pivotal move, SBI Holdings—a major Japanese financial services company and longtime partner of Ripple—publicly declared that under Japanese law, XRP is classified as a cryptocurrency asset, not a security. This statement came in response to the U.S. Securities and Exchange Commission (SEC) lawsuit filed against Ripple Labs in December 2020, which alleged that Ripple had raised over $1.3 billion through unregistered securities offerings via XRP sales.
SBI’s position is not based on speculation. The company referenced a research paper by Sadakazu Osaki of Nomura Research Institute, which analyzed Japanese financial regulations and concluded that XRP does not meet the legal definition of a security within Japan’s regulatory framework. This distinction is crucial, as it allows financial institutions like SBI to continue supporting XRP without violating local compliance standards.
Why Japan’s Regulatory Clarity Matters
Japan has long been at the forefront of crypto regulation, establishing clear guidelines for digital assets since 2017 under the Payment Services Act. The country recognizes certain tokens—like Bitcoin and XRP—as “crypto assets” rather than securities, provided they function primarily as mediums of exchange or value transfer tools rather than investment contracts.
This regulatory clarity gives Japanese firms a stable environment to innovate. For SBI, this means continuing its strategic collaboration with Ripple to advance blockchain-based payment solutions in Asia.
Strategic Alliance Between Ripple and SBI
The partnership between Ripple and SBI is more than symbolic—it's deeply operational. In October 2020, CoinDesk reported that Ripple planned to invest in MoneyTap, SBI’s blockchain-powered payments subsidiary. Built on RippleNet technology, MoneyTap aims to revolutionize domestic money transfers in Japan by enabling near-instant, low-cost transactions between banks and consumers.
Over 60 Japanese financial institutions have already joined the MoneyTap network, signaling strong institutional confidence in blockchain-driven finance. By leveraging Ripple’s xCurrent and xRapid protocols, these institutions can settle cross-border and domestic payments faster and more efficiently.
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This real-world utility strengthens the argument that XRP serves a functional role in financial ecosystems—not merely as an investment vehicle, but as a working digital asset facilitating liquidity and settlement.
Global Retreat vs. Regional Confidence
While exchanges such as Bitwise (U.S.), Bitstamp (Europe), and OSL (Hong Kong) have paused or delisted XRP following the SEC lawsuit, SBI’s stance highlights a growing divergence in global regulatory attitudes toward digital assets.
In highly regulated markets like the U.S., regulators often apply strict securities laws to tokens with centralized development teams or significant promotional activities. In contrast, jurisdictions like Japan, Singapore, and Switzerland focus more on token functionality than issuer intent when determining classification.
Joel Edgerton, Chief Operating Officer at BitFlyer USA—a crypto exchange also active in Japan—commented on SBI’s support:
“SBI is putting lipstick on a pig, trying to minimize reputational damage from the Ripple lawsuit in Japan. But they’re also positioning themselves as leaders in regulated blockchain innovation.”
While Edgerton’s tone is skeptical, his observation underscores an important truth: SBI is strategically building a compliant, future-ready financial ecosystem. With stakes in banking, asset management, and fintech, SBI cannot afford reputational risk—but its continued backing of XRP suggests confidence in both the technology and its legal standing within Japan.
Core Keywords Driving Market Perception
Understanding the evolving narrative around XRP requires familiarity with several core keywords that shape investor sentiment and regulatory discourse:
- XRP
- Ripple Labs
- SBI Holdings
- SEC lawsuit
- cryptocurrency regulation
- RippleNet
- blockchain payments
- digital asset classification
These terms frequently appear in news, compliance discussions, and technical analyses—making them essential for SEO visibility and audience engagement. Their natural integration into content ensures alignment with user search intent while avoiding artificial keyword stuffing.
FAQ: Addressing Key Questions About XRP and SBI
Q: Is XRP legal in Japan?
A: Yes. Under Japan’s Payment Services Act, XRP is recognized as a crypto asset, not a security. This allows licensed exchanges and financial institutions to trade and use it legally.
Q: Why did Coinbase delist XRP?
A: Coinbase suspended XRP trading due to the ongoing SEC lawsuit alleging unregistered securities offerings. U.S.-based platforms must comply with federal securities regulations, prompting cautious responses.
Q: What is MoneyTap and how does it use XRP?
A: MoneyTap is a mobile payment app developed by SBI Ripple Asia. It uses RippleNet for real-time transaction processing and may utilize XRP for liquidity optimization in cross-border transfers.
Q: Can SBI’s support influence other countries’ views on XRP?
A: While each jurisdiction sets its own rules, Japan’s progressive yet cautious approach often influences regulatory thinking across Asia. SBI’s institutional credibility adds weight to arguments for functional token classification.
Q: Does using XRP in payments mean it’s not a security?
A: Functional use cases are a key factor in regulatory assessments. If a token primarily facilitates transactions rather than promises returns, it's less likely to be deemed a security—especially under frameworks like Japan’s.
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Looking Ahead: The Future of XRP Amid Regulatory Challenges
The battle over XRP’s classification is far from over. The outcome of the SEC vs. Ripple case could set a precedent for how digital assets are treated in the U.S. financial system. Yet, international reactions show there is no one-size-fits-all answer.
SBI Holdings’ unwavering support demonstrates that regulatory interpretation varies by region, and practical utility continues to drive adoption where laws permit. As blockchain technology matures, more financial institutions may follow SBI’s lead—building compliant systems that integrate digital assets like XRP into everyday banking.
For investors and developers alike, the message is clear: jurisdiction matters. So does real-world application. And in Japan, XRP isn’t just surviving—it’s being actively integrated into the future of finance.
With strategic partnerships, regulatory clarity, and growing institutional adoption, the story of XRP is far from finished.