Japanese Banks Showcase XRP To Be Faster And 60% Cheaper Than SWIFT

Steady attention without excessive speculation.

Specifically, SBI Holdings shared the data at the conference on April 7 in Tokyo. SBI Holdings, Ripple’s largest external shareholder, led the presentation alongside its subsidiaries SBI Remit and SBI Ripple Asia.

Representatives from MUFG, Japan’s largest bank, attended the event. However, MUFG’s role was observational and the bank has not been confirmed as a pilot participant.

How the XRP Settlement Works

The pilot uses Ripple’s On-Demand Liquidity service. A sender’s fiat currency converts to XRP, transfers across the XRP Ledger in 3 to 4 seconds, then converts to the recipient’s local currency.

As a result, this mechanism removes the need for pre-funded nostro and vostro accounts. Traditional correspondent banking requires institutions to hold reserves in foreign currencies at partner banks. That ties up capital.

According to the pilot data, XRP-based settlement cut fees by up to 60% compared to standard SWIFT wire transfers. SWIFT typically charges $25 to $50 per outbound wire. Settlement takes 1 to 5 business days.

SBI Leads XRP Cross-Border Payments Push

SBI Holdings has been running live XRP remittances since 2021. The firm operates as Ripple’s largest external shareholder. That relationship dates back nearly a decade.

In February 2026, SBI issued a blockchain-based bond worth 10 billion yen, roughly $64 million. SBI distributes interest payments on that bond in XRP.

SBI Ripple Asia also plans to launch Ripple’s RLUSD stablecoin in Japan later in 2026. The original Q1 target may face delays, according to industry sources.

SBI’s deep financial ties to Ripple represent a potential conflict of interest. Investors should weigh that when evaluating pilot results from a Ripple-branded event. The data has not been independently audited.

Twelve New ODL Currency Pairs Announced

The conference also revealed 12 new On-Demand Liquidity currency pairs targeting Southeast Asia. The expansion focuses on remittance corridors between Japan and countries like the Philippines.

The Philippines received $41.21 billion in remittances in 2025. That figure is projected to reach $55.75 billion by 2030. That makes it one of the largest remittance markets in the region.

Japan currently accounts for more than half of Ripple’s global ODL volume. The new currency pairs aim to deepen that lead across additional Southeast Asian markets.

Japan Moves to Classify Crypto as Financial Instruments

Meanwhile, the pilot data arrived during a pivotal week for Japanese crypto regulation. On April 10, three days after the conference, Japan’s cabinet approved a plan to classify cryptocurrencies as financial instruments.

Separately, Japanese lawmakers are working to reduce the crypto tax rate from 55% to 20%. The proposed cut would align digital asset taxation with traditional securities.

At the same time, Japanese investors reportedly purchased roughly $21.7 billion worth of XRP over the prior 12 months. The original source of that figure remains unclear. The number, if accurate, underscores strong domestic demand for the token.

XRP Price Falls Despite Positive Developments

XRP traded near $1.33 at the time of the conference. The token is down roughly 27% year-to-date despite the favorable pilot results and regulatory momentum.

Still, the broader market downturn has weighed on XRP alongside other digital assets. Ripple settled its long-running dispute with the SEC in August 2025, paying a $50 million fine. The ruling confirmed that XRP is not a security in retail transactions.

The XRP Ledger has processed more than 4.28 billion total transactions. Daily volume runs between 2 million and 3 million transactions across 5.66 million wallets.

SWIFT Is Not Standing Still

In contrast, SWIFT is developing its own modernization plan. The network announced a new retail payments framework for June 2026. That could narrow the speed and cost gap that XRP cross-border payments currently exploit.

Framing XRP as a “SWIFT killer” overstates the current situation. The Japanese pilot, while promising, remains a controlled test. Scaling live remittance flows to production volume involves regulatory, liquidity, and compliance challenges. Pilot conditions do not fully replicate those hurdles.

Sub-4-second settlement, lower costs, and strong institutional backing from SBI give XRP cross-border payments a credible foothold. The Japanese remittance market offers a strong proving ground for broader adoption.

What Comes Next for XRP in Japan

Going forward, the immediate focus shifts to whether other Japanese banks follow SBI’s lead. MUFG’s attendance at XRP Tokyo 2026 suggests interest, though no commitment has been announced.

Japan’s regulatory clarity, combined with the proposed tax reform, could accelerate institutional adoption. The RLUSD stablecoin launch later this year would add another layer to Ripple’s ecosystem in the country.

For now, the pilot results offer a data point, not a verdict. Independent validation and production-scale deployment will determine whether XRP cross-border payments can move beyond promising trials.

This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.