XRP Overtakes Ethereum in Popularity Among Japanese Investors

Recent data confirms that XRP has surged past Ethereum (ETH) in popularity among Japanese investors, solidifying its position as the second-most held cryptocurrency in Japan. 

With an 18% share of tokens stored on Japanese exchanges, XRP trails only behind Bitcoin (BTC), which dominates with a 65% market share. Meanwhile, Ethereum ranks third with a 14.4% share.

This strong demand for XRP in Japan is largely attributed to Ripple’s long-standing presence in the country, bolstered by strategic partnerships, regulatory clarity, and institutional backing.

Why Is XRP So Popular in Japan?

1. SBI Holdings’ Endorsement

XRP’s deep-rooted presence in Japan is largely due to SBI Holdings, a major financial giant in the country.

In 2016, SBI partnered with Ripple to establish SBI Ripple Asia, a venture aimed at driving blockchain-based financial solutions across Japan and the broader Asian market.

In 2019, SBI CEO Yoshitaka Kitao joined Ripple’s board of directors, further solidifying the partnership.

SBI has also adopted XRP Ledger for its operations, marking a significant milestone for Ripple in the Japanese financial sector.

Also read: XRP in Japan: How Will Japanese Banks’ Adoption Impact XRP Prices?

2. Favorable Regulatory Environment

Japan has emerged as one of the most crypto-friendly nations, offering regulatory clarity on XRP’s status.

In 2021, Japan’s Financial Services Agency (FSA) clarified that XRP is not a security, in stark contrast to the ongoing SEC lawsuit in the U.S.

Ripple CEO Brad Garlinghouse has repeatedly praised Japan’s crypto-friendly regulations, even considering moving Ripple’s headquarters to Tokyo in 2020 amid legal battles in the U.S.

3. Expanding Market Presence

Ripple has been actively growing its presence in Japan and South Korea, launching:

• A dedicated blockchain innovation fund in 2023 to support startups in Japan and South Korea.

• Collaborations with South Korean exchanges, where XRP has gained significant traction, with Korean traders fueling major price rallies.

Also read: Why Invest in XRP? A Comprehensive Analysis for 2025

Bitcoin Still Reigns Supreme

Despite XRP’s popularity, Bitcoin remains the undisputed leader among Japanese investors, commanding a 65% share of crypto holdings on local exchanges.

Bitcoin’s dominance has increased over the years, even as altcoins continue to proliferate.

The preference for Bitcoin reflects Japan’s conservative investment approach, prioritizing proven, high-liquidity assets over speculative altcoins.

Also read: XRP Price Prediction for 2030 - What is the XRP Price Prediction in the Next 5 Years?

Ethereum Lags Behind

While Ethereum (ETH) remains a global crypto powerhouse, its 14.4% market share in Japan suggests that local investors are more inclined toward XRP’s real-world use cases and Ripple’s institutional backing.

Final Thoughts

Japan’s strong institutional support and regulatory clarity have cemented XRP’s position as the second-most popular cryptocurrency in the country. 

With backing from SBI Holdings and growing adoption across Asia, XRP continues to thrive despite legal uncertainties in the U.S..

While Bitcoin remains dominant, XRP’s expanding role in Japan’s financial ecosystem could lead to further growth and adoption in the coming years.

Read more about XRP: 

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XRP (XRP) Price Today

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FAQs

1. Why is XRP more popular than Ethereum among Japanese investors?

XRP’s strong presence in Japan is driven by institutional backing from SBI Holdings, regulatory clarity, and strategic partnerships. Unlike Ethereum, which ranks third in popularity, XRP benefits from Ripple’s deep integration into Japan’s financial ecosystem.

2. What role does SBI Holdings play in XRP’s dominance in Japan?

SBI Holdings, a major Japanese financial institution, partnered with Ripple in 2016 to launch SBI Ripple Asia. SBI has since adopted XRP Ledger for operations, and its CEO, Yoshitaka Kitao, even joined Ripple’s board, significantly boosting XRP’s credibility in Japan.

3. How does Japan’s regulatory environment impact XRP’s popularity?

Japan’s Financial Services Agency (FSA) declared in 2021 that XRP is not a security, unlike the ongoing legal classification debates in the U.S. This regulatory clarity has encouraged greater institutional and retail adoption of XRP in Japan.

4. Is Bitcoin still the most popular cryptocurrency in Japan?

Yes, Bitcoin remains Japan’s most dominant crypto asset, with a 65% market share on Japanese exchanges. However, XRP has secured second place (18%), surpassing Ethereum (14.4%) in investor preference.

5. Could XRP’s popularity in Japan influence global adoption?

Given Japan’s strong institutional support, clear regulations, and Ripple’s expanding presence in Asia, XRP’s growing dominance could set a precedent for adoption in other markets, especially in regions seeking regulated digital asset solutions.