Ripple is ramping up its push in Japan to ignite **XRP Ledger activity** through partnerships with major banking giants. The company is backing a new startup program that promises grants and institutional support, aiming to breathe life into the XRPL ecosystem. But with TVL crashing and market headwinds, is this the real spark or just more hype?
This initiative comes at a time when the broader crypto market grapples with downturns, as seen in recent crypto market declines. Ripple’s bet on Japan’s regulatory-friendly environment could be a smart play, but on-chain metrics paint a less rosy picture. Let’s dissect whether institutions can truly lift **XRP Ledger activity** or if it’s business as usual.
The Japan Financial Infrastructure Innovation Program, launched by Asia Web3 Alliance Japan and Web3 Salon, opened applications on December 19, 2025, targeting startups in stablecoins, real-world asset tokenization, and credit infrastructure. Each selected startup gets a $10,000 grant, backed by heavyweights like Mizuho Bank, SMBC Nikko Securities, and Securitize Japan. Christina Chan from RippleX called it a commitment to Japan’s blockchain opportunity, citing the XRPL’s speed and low costs.
Ripple’s Japan Play: Institutions Enter the XRPL Arena
Ripple’s strategy in Japan isn’t new, but this program marks a deliberate escalation, testing if traditional finance can drag **XRP Ledger activity** out of its slump. By aligning with banks that have eyed crypto moves, Ripple positions XRPL as the compliant backbone for digital finance. The timing aligns with Japan’s fintech push, yet questions linger on execution amid global volatility.
Japan’s regulatory clarity has long tempted blockchain firms, offering a sandbox for innovation without the SEC’s shadow. This program funnels talent into high-value areas, potentially feeding Ripple’s larger 1 billion XRP fund for Asia developers. But skeptics note it’s a low-cost scout for bigger investments, not an instant activity booster.
The backing roster underscores the institutional angle: Mizuho and SMBC aren’t dabbling; they’ve explored Bitcoin and stablecoins before. This could embed XRPL into real banking ops, creating stickiness beyond retail speculation.
Program Details and Startup Incentives
The Japan Financial Infrastructure Innovation Program runs applications until January 18, 2026, focusing narrowly on stablecoins, RWA tokenization, and credit tools. $10,000 grants per startup sound modest, but they’re entry tickets to networks with deep pockets. Analysts see it as a talent pipeline for Ripple’s Asia-focused funds, sifting promising builders from the noise.
Christina Chan’s statement highlights XRPL’s edges: sub-second settlements, pennies in fees, and proven reliability. In Japan, where fintech week spotlights such tech, this resonates. Yet, success hinges on startups delivering compliant products that banks actually deploy, not just prototypes.
Securitize Japan’s involvement adds tokenization heft, bridging TradFi and blockchain. If even a few graduates scale, **XRP Ledger activity** could see organic upticks via real usage, not just grants.
Backing from Banking Powerhouses
Mizuho Bank and SMBC Nikko bring credibility; these aren’t fringe players. Mizuho has tested stablecoins, SMBC eyes tokenized assets. Their support signals XRPL’s maturity for enterprise, potentially unlocking pilots in credit and payments.
This isn’t altruism. Banks seek efficient rails amid yen carry trade woes, as covered in our yen carry trade analysis. XRPL’s efficiency fits, but integration risks regulatory snags or tech mismatches.
Securitize Japan’s role amplifies RWA potential, competing in a field where XRPL holds $213 million per Rwa.xyz, ninth globally. Trailing Ethereum, it needs wins like these to climb.
XRPL Metrics: The Harsh Reality Check
While partnerships dazzle, **XRP Ledger activity** on-chain tells a contraction story. TVL has halved from July’s $120 million peak to $62 million, per DefiLlama. This exodus from DeFi protocols clashes with Ripple’s adoption narrative, raising doubts on institutional lift.
Broader market pain contributes: Bitcoin’s 30% drop from $126k October highs mirrors the bleed. Yet XRPL’s DeFi lag suggests protocol-specific issues, like competition in tokenization where it ranks low.
Ripple’s roadmap eyes institutional DeFi, but capital flight indicates users seek higher yields elsewhere. The Japan program must reverse this to validate the hype.
TVL Plunge and DeFi Exodus
DefiLlama data shows XRPL TVL cratering nearly 50%, from $120M to $62M. This isn’t isolated; it’s capital fleeing amid low yields and better alternatives. Even as partnerships grow, usage shrinks, a classic disconnect in crypto.
Compare to surging networks: Ethereum dominates RWA with billions. XRPL’s speed helps, but liquidity and composability lag. Startups must build sticky apps to stem the outflow.
Market downturns amplify this, akin to recent Bitcoin sell-offs. Short-term holders capitulating, per data, adds pressure.
Tokenization Race: XRPL’s Uphill Battle
At $213M tokenized assets, XRPL sits ninth per Rwa.xyz, dwarfed by leaders. Ondo’s treasury fund launch helps, but competition from Solana and Ethereum bites. Japan’s program targets this, but execution is key.
See XRP ETF inflows for optimism, yet on-chain lags. Banks could tip scales via RWAs, but XRPL needs interoperability wins.
China’s RWA ban contrasts Japan’s openness, positioning Ripple favorably if programs deliver.
Broader Market Context and Ripple’s Bet
**XRP Ledger activity** hopes ride on Japan shielding from volatility, but Bitcoin’s slide and stock decoupling test resilience. Fed cuts and CPI reports influence, yet Ripple eyes sticky banking ties over speculation.
Santa rally hopes fade with AI checks, per our coverage, mirroring XRPL caution. Institutions might provide ballast, but metrics demand proof.
The 1B XRP fund looms as a scaling lever, if Japan scouts succeed.
Bitcoin Downturn’s Ripple Effect
Bitcoin’s 30% retreat from $126k drags alts, including XRP. Short-term holders selling, as analyzed here, hits XRPL TVL. Yet decoupling talks suggest divergence potential.
Weekly forecasts eye Fed cuts boosting, but XRPL needs unique catalysts like Japan.
Japan’s Regulatory Edge
Japan’s framework trumps others, fostering innovation sans chaos. Stablecoin shifts and JPYC digital yen pave for XRPL. Banks’ involvement cements this.
Contrast SEC roundtables; Japan’s proactive stance aids blockchain upgrades too.
What’s Next for XRP Ledger Activity
The JFIIP could seed a resilient ecosystem, embedding XRPL in Japan’s finance. Success means rising TVL, RWA growth, and sustained activity beyond pumps. Failure? More partnerships without traction.
Watch 2026 for fund deployments and pilots. With Bitcoin 2026 outlooks bullish, XRPL must carve its niche. Institutions might just be the anchor in choppy seas, but data will decide.
Ripple’s gamble tests if TradFi can revive **XRP Ledger activity** long-term, cutting through volatility’s noise.
