Ripple announced a groundbreaking partnership with Japan's SBI Remit and Philippine crypto exchange Coins.ph to implement its On-Demand Liquidity (ODL) service in Japan for the first time. This strategic move utilizes XRP as a bridge currency in foreign exchange transactions, marking a significant advancement in cross-border payment solutions.
Why XRP Price Jumped 16%
Following the announcement:
- XRP price surged over 16% within hours
- Current trading price: $0.70 (CoinGecko data)
- Market cap increased by $3.2 billion during the rally
👉 Discover how ODL is revolutionizing global payments
The Japan-Philippines Payment Corridor
SBI Group—Ripple's investor and shareholder—revealed this collaboration creates Japan's first crypto-powered international remittance service through three key players:
- SBI Remit: Japan's leading remittance provider
- SBI VC Trade: Regulated cryptocurrency exchange
- Coins.ph: Philippines' central bank-approved digital wallet
How the ODL System Works
- Japanese sender initiates transfer via SBI Remit
- SBI VC Trade instantly converts JPY to XRP
- Coins.ph receives XRP and converts to PHP
- Recipient gets pesos in their wallet within seconds
Key Advantages Over Traditional Systems
| Feature | Traditional Remittance | Ripple ODL |
|---|---|---|
| Speed | 2-5 business days | 3 seconds |
| Cost | 5-10% fees | <1% fees |
| Pre-funding | Required | Eliminated |
| Liquidity | Bank hours | 24/7 |
Why Japan-Philippines Matters
- $18 billion in remittances from Japan to Philippines annually
- Japan ranks among top 5 most expensive G20 countries for cross-border payments
- Filipinos represent Japan's 3rd largest foreign community
"This ODL implementation lays the foundation for mass crypto adoption in Japan while solving real-world payment inefficiencies." — Ripple Statement
👉 Learn about XRP's role in global finance
Ripple's Growing Legal Momentum
Despite the ongoing SEC lawsuit:
- Ripple secured 3 major court victories in 2021
- CEO Brad Garlinghouse hinted at potential IPO after case resolution
- SBI CEO Yoshitaka Kitao confirmed plans to list Ripple shares on Tokyo exchange
FAQ: Your Top Questions Answered
Q: How does ODL differ from traditional remittance?
A: ODL uses XRP as a bridge currency to avoid pre-funding destination accounts, reducing costs by 40-70% compared to conventional methods.
Q: Is this service available to individuals?
A: Currently targeting institutional partners, but end-users benefit through faster/cheaper transfers from participating remittance providers.
Q: What's next for Ripple in Asia?
A: The company plans to expand ODL corridors to South Korea, Thailand, and Vietnam by 2025.
Q: Why use XRP instead of stablecoins?
A: XRP settles transactions in 3-5 seconds versus minutes/hours for stablecoins, with lower volatility during cross-border settlement windows.
Industry Impact and Future Outlook
This development:
- Validates XRP's utility in real-world payment rails
- Positions Japan as Asia's crypto payment hub
- Could pressure competitors like SWIFT to accelerate innovation
With over $15 trillion in annual cross-border payment flows, Ripple's ODL solution demonstrates how blockchain can transform global finance—one corridor at a time.