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

$XRP

We recently evaluated a scenario: if all banks in Japan begin to utilize XRP as a "bridge asset" in their banking operations for settlement, what level might the price of XRP rise to?

Currently, the trading price of XRP is around $2, but most market participants believe that this price does not fully reflect the long-term practical value of this cryptocurrency asset. They believe that with wider adoption, especially with the participation of large financial institutions, the valuation of XRP is expected to increase significantly.

One market that could have a significant impact on XRP is the Japanese financial system. For many years, Ripple and XRP have established a deep and solid partnership within the Japanese banking and payments industry.

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✨ Japan's Huge Banking Industry

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

Mitsubishi UFJ Financial Group

Sumitomo Mitsui Financial Group

Mizuho Financial Group

In addition, there is a wide distribution of regional banks, 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 licensed banks in Japan are approximately 1,447 trillion yen, equivalent to about $9.65 trillion.

At the same time, as of February 2025, the total deposits of all financial institutions are approximately 1,047 trillion yen (about $6.98 trillion), with a year-on-year growth rate of about 1.4%.

However, subsequent growth in deposits has shown signs of slowing. It is estimated that by November 2025, total deposits will be between 1,060 and 1,070 trillion yen, with a year-on-year growth rate of about 1.5%. Among these:

Current deposits are about 650 trillion yen

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

In August 2025:

Large banks' loan-to-deposit ratio is about 40%–50%

Regional banks are about 50%–60%

Shinkin banks are about 60%–70%

Securities holdings are about 300–350 trillion yen, accounting for about 40% of total assets.

As of September 2024, Japan has approximately:

100 urban and regional banks

250 Shinkin banks

About 13,500 domestic bank branches