SBI Group to Launch Japan’s First XRP ETF, Paving the Way for Major Crypto Investment
By Sam Daodu, Published May 19, 9:12 AM EDT
Japan is set to make a significant leap in cryptocurrency investment with its largest financial group, SBI Holdings, actively working to list the country’s first Exchange-Traded Fund (ETF) based on XRP, the cryptocurrency tied to Ripple. This development follows major regulatory changes and positions Japan at the forefront of digital asset investment innovation in Asia.
SBI’s Ambitious XRP ETF Plan
SBI Holdings filed two ETF applications with Japan’s Financial Services Agency (FSA) in August 2025. The filings cover:
- A spot Bitcoin and XRP ETF for trading on the Tokyo Stock Exchange
- A hybrid Digital Gold Crypto ETF, which would consist of at least 51% gold and up to 49% crypto investments
Together, SBI targets assets under management (AUM) reaching an impressive $32 billion within three years of launching these products.
This bold ETF initiative was publicly outlined during SBI’s Q2 2025 financial results and quickly became the focus of crypto industry observers, though the applications have been undergoing regulatory review for months.
SBI’s Deep Ties to Ripple and XRP
SBI’s move is not incidental; the firm has been Ripple’s largest external shareholder since 2016, holding approximately 9% equity in the company. Furthermore, SBI operates Japan’s only live XRP remittance corridor and manages a substantial portion of Ripple’s global On-Demand Liquidity (ODL) volume, facilitating efficient cross-border settlements especially to countries such as the Philippines, Vietnam, and Indonesia.
In a groundbreaking step taken on March 31, 2026, SBI VC Trade began distributing Ripple’s RLUSD stablecoin in Japan, marking the first regulated distribution of RLUSD in Asia.
Digital infrastructure and experience in handling XRP uniquely position SBI to pioneer an XRP ETF, leveraging a decade of integration with Ripple’s technology—an advantage unmatched by other Japanese financial entities.
Regulatory Changes Open the Door for Crypto ETFs in Japan
Historically, Japan has regulated cryptocurrencies under the Payment Services Act of 2017, which classified digital assets like Bitcoin and XRP as payment instruments rather than investment products. This classification prevented ETFs from integrating cryptocurrencies, effectively barring pension funds, insurance companies, and institutional investors from crypto exposure via regulated ETFs.
However, on April 10, 2026, Japan’s cabinet authorized an amendment to the Financial Instruments and Exchange Act (FIEA), reclassifying 105 cryptocurrencies—including Bitcoin, Ethereum, and XRP—as financial instruments. This change brings crypto regulation in line with other securities laws and sets the stage for ETFs that can hold crypto assets.
The amendment is slated for implementation in fiscal year 2027, with the first crypto ETF approvals expected by fiscal year 2028. This timing aligns with SBI’s ambitions but means its XRP ETF is unlikely to launch before 2027. —
XRP’s Popularity in Japan and Tax Reform
Between July 2024 and June 2025, Japanese investors poured approximately $21.7 billion into XRP through centralized exchanges. This figure is more than quadruple the inflows into Bitcoin during the same period. Notably, this surge occurred despite Japan’s stringent crypto tax regime, where gains were taxed up to 55%.
Upcoming tax reforms will replace the progressive 55% tax rate with a flat 20% rate—the same level applied to stocks and investment trusts—and introduce a three-year loss carryforward provision. Such changes, expected to take effect by late 2026 or early 2027, will make crypto investment far more attractive and accessible.
Once the XRP ETF is listed on a regulated exchange, Japanese pension funds, insurance companies, and asset managers will have a compliant way to gain exposure to crypto assets just as easily as traditional stocks, potentially unlocking significant institutional capital.
Competitive Landscape and International Pressure
SBI is not alone in the race to bring crypto ETFs to Japan. Major financial players such as Rakuten Securities, Nomura Securities, Daiwa Securities, and SMBC Group are all developing crypto investment products, including ETFs and investment trusts.
While SBI leads with early filings and deep crypto expertise, the industry competition is intensifying rapidly. Rakuten, Nomura, Daiwa, and SMBC are building their crypto capabilities from the ground up, aiming to compete once the regulatory window opens.
Regionally, Japan faces external pressure as well. South Korea plans to implement a 22% crypto tax in January 2027, and Hong Kong has already approved spot Bitcoin and Ethereum ETFs, accelerating demand for regulated crypto investment products across Asia.
What to Watch Going Forward
SBI’s XRP ETF represents a potentially transformative catalyst for XRP adoption and investment in Japan, but the actual market impact will likely materialize in 2027 or later. Key factors to monitor include:
- Legislative Approval: Whether Japan’s Diet passes the formal FIEA amendment, which is essential for the regulatory framework to take effect.
- Competitive Filings: ETF applications from other major Japanese financial firms would indicate a competitive institutional race.
- FSA Approvals: The timing of the first crypto ETF approvals will mark a turning point for crypto investment accessibility.
If SBI’s $32 billion target in assets materializes, the demand could eclipse that witnessed in the U.S., where spot XRP ETFs have attracted $1.39 billion since their November 2025 launch.
Conclusion
SBI’s planned XRP ETF is well-timed to coincide with regulatory reforms and shifting tax policy, creating Japan’s most favorable environment yet for large-scale institutional crypto investment. This milestone could solidify Japan’s status as a regional leader in digital asset innovation, opening new avenues for XRP and digital currency adoption—once the legal and regulatory framework fully matures.
Disclosure: This article contains information for educational purposes and does not constitute investment advice. Readers should consult financial professionals before engaging in crypto investments.