How High Could XRP Go If All Japanese Banks Adopt It?

XRP currently trades near $2, but many investors believe its price does not yet reflect its long-term utility, especially if large financial institutions adopt it as a bridge asset. One market with major potential impact is Japan, where Ripple and XRP already have deep ties to the banking sector.

Why Japan Matters

Japan has one of the world’s largest banking systems, led by megabanks such as Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, alongside hundreds of regional and cooperative banks. Collectively, Japanese banks control nearly 10% of global banking assets, with total assets around $9.6 trillion.

Hypothetical XRP Valuation Scenario

Using an aggressive adoption model, Google Gemini estimated XRP’s upside if all Japanese banks used it for settlements. With XRP’s market cap near $120 billion at $2, the model assumed XRP could grow to 10% of Japanese banks’ total assets. That would imply a market cap of roughly $965 billion and a hypothetical price near $16 per XRP—about an 800% increase.

However, this scenario is extreme, as settlement assets support liquidity flows rather than fully reflecting bank balance sheets.

XRP’s Existing Footprint in Japan

XRP adoption in Japan is not purely theoretical. In 2016, Ripple partnered with SBI Holdings to form SBI Ripple Asia, expanding Ripple’s payment solutions across the region. By 2017, the Japan Bank Consortium included 61 banks representing over 80% of Japan’s banking assets.

In 2021, SBI Remit launched Japan’s first XRP-powered international remittance service using Ripple’s On-Demand Liquidity.

Bottom Line

If Japanese banks broadly adopted XRP, the impact on price could be significant. While a $16 XRP remains a highly optimistic scenario, Japan’s scale and XRP’s existing partnerships highlight why institutional adoption there could be a major long-term catalyst.