Nick, the host of Ncash show, argues that Japan is quietly positioning XRP at the center of its next phase of digital finance, tying together regulatory reform, banking partnerships, and ETF ambitions into what he calls a “major green light” for the token.
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Referencing a report from CryptoZoros, the analyst highlights a key claim: Japan is set to classify XRP as a regulated financial product under the country’s Financial Instruments and Exchange Act (FIEA), with implementation targeted for Q2 this year.
That would shift XRP from being treated purely as a “crypto asset” to a fully regulated investment product, potentially opening doors for broader institutional use and stricter investor protections.
XRP Gains Highly-Regulated Status Amid Ripple’s Japan Focus
The video links this regulatory shift to a web of long-running connections between Ripple, XRP, and major Japanese institutions.
The analyst revisits Ripple’s 2021 launch of On-Demand Liquidity (now rebranded as Ripple Payments) with SBI Remit, built on the SBI VC Trade platform and driven by the SBI Ripple Asia joint venture. SBI is described as one of Ripple’s earliest and largest backers.
The host also points to more recent moves, including Ripple’s collaboration with HashKey DX announced in April 2024 to bring XRP Ledger–powered enterprise solutions to Japan, and a dedicated “Japan and Korea fund” that commits 1 billion XRP to support developers and startups building on the XRP Ledger.
That initiative, run in partnership with Web3 Salon and the Asia Web3 Alliance Japan, is scheduled to run through March 2026 and includes startup pitch events, policy discussions, and compliance workshops.
Overlaying all this is a policy backdrop that has turned more crypto-friendly. The analyst notes comments from Japan’s finance minister in early January supporting crypto trading on stock exchanges and signaling tax and regulatory changes designed to bring digital assets into the financial mainstream.
Dual Bitcoin–XRP ETF Ambitions Along With RLUSD Distribution
On the capital markets side, the video cites reports that SBI Holdings has filed for a dual-asset crypto ETF combining Bitcoin and XRP in a single regulated product.
This comes as Japanese regulators have floated a 2028 timeline for broader crypto ETF approval — a schedule SBI’s own chief, Yoshitaka Kitao, has publicly criticized as “too late,” according to the analyst’s summary.
The timing is presented as increasingly synchronized: Japan potentially recognizing XRP as a regulated financial product in Q2, while Ripple and SBI plan to distribute Ripple’s RLUSD stablecoin in Japan around Q1 2026 (a date the host thinks could slip into Q2).
Nick suggests that if RLUSD adoption on the XRP Ledger accelerates in Japan, XRP usage may rise in parallel as a regulated asset used to clear or support those transactions.
For now, many details remain unconfirmed at the official level, and NCash acknowledges that some earlier Japanese banking initiatives around Ripple never fully materialized in public updates.
Even so, he argues that the confluence of regulatory movement, SBI’s ETF push, and Ripple’s Japan-specific programs make the country one of the most important jurisdictions to watch for XRP in the coming 12–24 months.
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According to the video, this status change is reported as “set to” happen under FIEA with Q2 implementation targeted, but formal confirmation from Japanese regulators was not shown in the analysis.
SBI is portrayed as a core Ripple partner and early investor, operating SBI Ripple Asia, SBI Remit, and SBI VC Trade, and now pushing a dual Bitcoin–XRP ETF application.
Ripple and SBI plan to distribute RLUSD in Japan around early 2026, and suggests that greater use of RLUSD on the XRP Ledger could drive more XRP-based activity if XRP is recognized as a regulated financial product.
The video notes that Japan’s tentative 2028 target for broader crypto ETFs is seen by some, including SBI’s leadership, as too slow compared to the U.S. and other markets, which may be why SBI is pushing ahead with filings now.
