If all banks in Japan start using XRP, how much might the price of XRP rise?

$XRP

We recently assessed: If all banks in Japan begin to utilize XRP as a "bridge asset" for cross-border and interbank settlement, what level could the price of XRP potentially reach?

Currently, XRP is trading at around $2, but many market participants believe this price does not yet reflect the long-term utility value of this crypto asset. They believe that with broader adoption, especially with the participation of large financial institutions, the valuation of XRP is expected to rise significantly.

One market that could have a significant impact on XRP is the Japanese financial system. Ripple has established deep connections with banks and the payment industry in Japan over the years.

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✨ Japan's Huge Banking Scale

It is worth noting that Japan has one of the largest banking systems in the world (by total assets). The industry is dominated by three major banking groups:

Mitsubishi UFJ Financial Group

Sumitomo Mitsui Financial Group

Mizuho Financial Group

In addition, there are many regional banks, credit unions (Shinkin banks), and other financial institutions.

According to the latest comprehensive data from the Bank of Japan, as of the end of November 2024, the total assets of domestically licensed banks in Japan are approximately ¥1,447 trillion, equivalent to about $9.65 trillion.

Meanwhile, as of February 2025, the total deposits of all financial institutions are approximately ¥1,047 trillion (about $6.98 trillion), a year-on-year increase of 1.4%.

However, the growth of deposits has slowed down subsequently. It is expected that by November 2025, total deposits will increase to ¥1,060–1,070 trillion, with an annual growth rate of about 1.5%. Among them:

Demand deposits are about ¥650 trillion

Time deposits are about ¥225 trillion (as of the end of February 2025)

In August 2025:

The loan-to-deposit ratio for large banks is about 40%–50%

For regional banks, it is about 50%–60%

For Shinkin banks, it is about 60%–70%

The scale of securities investment is about ¥300–350 trillion, accounting for approximately 40% of total assets.

As of September 2024, Japan has approximately:

100 city and regional banks

250 Shinkin banks

About 13,500 domestic bank branches