Ripple Labs Funding XRP Development in Japan and South Korea - Coindoo
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Ripple Labs Funding XRP Development in Japan and South Korea

Editorial Team Avatar
Jul 10, 2024
4 min reading time

Ripple has proven to be so efficient at cross-border transactions that it is a staple crypto and has seen partnerships with the likes of Western Union. Now, the token’s use in Japan and South Korea could increase thanks to new funding from its parent company Ripple Labs.

The coin is also widely used for purchases, with many crypto casinos accepting it for deposits and withdrawals. For example, Stake Casino isn’t legal in many parts of the world, but alternatives are plentiful, and many of the best ones accept Ripple, as well as more common tokens like Bitcoin and Ethereum.

Ripple is also favored by banks around the world, with Santander and the Commonwealth Bank of Australia having partnered with Ripple Labs.

Here’s what the future holds for the company in Japan and South Korea:

Ripple Labs’ Big Expansion Plans 

Ripple recently announced a new fund geared at developing innovation around XRP Ledger and driving the use of its native token in both Japan and South Korea. The company previously allocated 1 billion XRP tokens towards global expansion and this move is part of efforts to target the Asia-Pacific market. 

“We’re proud to launch the XRPL Japan & Korea Fund to boost innovation & utility on the #XRPL in APAC! “ the company said on Twitter/X, noting that it would be pursuing corporate partnerships, dev grants, startup investments, and community growth.

Ripple’s vice president of strategic initiatives, Emi Yoshikawa has also chimed in, saying that Japan and South Korea have a lot of potential to become blockchain innovation hubs. There is an ongoing race around the world for blockchain supremacy, with countries like the UK declaring their interest. 

But Asian countries often have both existing tech innovation and a healthy population which gives them a leg up. There is also the matter of cross-border transactions that XRP is known for.

Several Asian countries see billions of dollars in remittance each year and this means that there is a huge potential market for XRP moving forward. Brad Garlinghouse, the CEO of Ripple Labs, has even suggested that the company’s headquarters could be moved to Japan.

Now is also a pivotal time for XRP as it is coming off legal wins and anticipating more developments. It was famously sued by the SEC in the United States based on the claim that XRP is an unregistered security. Ripple Labs won the case in court which only increased investor confidence in the token which was reflected in its market price.

Recently, its CEO has hinted that the token will be getting its own exchange-traded fund (ETF) soon. This year saw a major milestone for the crypto space as Bitcoin secured its first spot ETFs in the United States. Not only was this a big win for the industry but it also opened the door for more tokens to get the ETF treatment. 

Less than 6 months after the Bitcoin ETF launched, Ether got its own ETFs. There is a lot of speculation about which tokens will be up next and according to Garlinghouse, XRP is the one to watch.

“I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF, and that’s great,” he said. 

If this prediction comes true, we can expect the price of XRP to see a positive reaction. This, in turn, will drive demand for the token around the world. As such, Japanese investors who would have easier access to the token will be able to benefit from these price movements. 

Why XRP’s Presence is Needed

The benefits of XRP creating a bigger presence in Asia are multi-faceted. First, the token can be used to circumvent expensive and slow cross-border transaction structures. XRP is renowned for sending large amounts of money across borders at a very low cost and very quickly. 

XRP having a more prominent presence in Japan would also mean that other major blockchain projects might move there as well. This would, in turn, situate the count to become a global leader in blockchain development. It would be especially timely if an XRP ETF launches around the same time, letting investors take maximum advantage of the situation. 

In a public statement, Ripple Labs has said that it plans to pursue corporate partnerships and this can benefit smaller startups in the country as well. Adoption rates of blockchain technology and cryptocurrency could also see a positive impact thanks to these collective efforts.

These plans have just been announced but it will be interesting to see how they unfold over time. 

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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