Japan’s financial powerhouse, SBI Holdings, is making significant moves in the cryptocurrency space. These initiatives could potentially shape the future landscape of digital assets in Japan.
Here’s a clear breakdown of SBI’s strategic actions and their potential implications.
SBI’s Proposal for XRP-Linked ETFs
In alignment with its Q2 2025 financial strategy, SBI has put forward a proposal for two innovative exchange-traded funds (ETFs). The first model integrates gold—comprising over 51 percent—with cryptocurrencies, while the second is dedicated entirely to digital currencies like Bitcoin and XRP. Should these ETFs receive regulatory approval, they would mark Japan’s first regulated ETFs inclusive of XRP, thereby promoting the institutional acceptance of Ripple’s technology.
Introducing the Gold-Crypto ETF for Balanced Investment
The introduction of the Digital Gold Crypto ETF aims to blend the stability of gold with the growth potential of XRP and Bitcoin. This ETF is crafted to appeal to both crypto enthusiasts and traditional investors, broadening SBI’s reach across diverse investor profiles.
This strategic move demonstrates SBI’s strong belief in the long-term utility of XRP, particularly in the realm of cross-border payments. As a pivotal partner of Ripple, SBI continues to advocate for XRP across Asian markets.
SBI’s Growing Influence in the Stablecoin Arena
SBI is making significant inroads into the stablecoin market. The firm plans to support Ripple’s USD-backed stablecoin, RLUSD, within this fiscal year. In addition, SBI has formed a partnership with Circle to promote the use of USDC within Japan.
With ambitions to facilitate the domestic use of USD-backed stablecoins, SBI sees potential benefits for both Japan and the U.S. To achieve this, SBI is engaging with regulators to discuss relaxing key restrictions, such as the existing ¥1 million transfer limit, which is seen as a barrier to broader business adoption.
Potential for a Yen-Backed Stablecoin
Exploring further into stablecoins, SBI is considering the development of a yen-backed stablecoin. The company plans to collaborate with licensed banks and trust companies to issue this digital currency. SBI believes that greater adoption of a JPY-backed stablecoin could boost demand for Japanese government bonds, stabilize the yen, and solidify its global standing.
Prospects for Crypto Tax Reform in Japan
Ripple Payments is now utilized by over 100 financial institutions across 55 countries for cross-border transactions. SBI is advocating for Japan to categorize cryptocurrencies as investment assets rather than mere payment tools, suggesting a separate, lower tax rate instead of the current progressive rate of up to 55.95%.
With increasing political support, particularly following recent elections, the momentum for tax reform is gaining. SBI also advocates for the removal of transfer limits on overseas stablecoins to enhance their business utility.
The Evolution of Japan’s Crypto Regulations
Japan’s Financial Services Agency (FSA) is actively reviewing its cryptocurrency regulations, paving the way for new financial products like ETFs and broader stablecoin adoption.
The FSA has proposed reclassifying cryptocurrencies as financial products, which would facilitate the introduction of crypto ETFs and reduce the tax rate on gains from 55% to 20%. This initiative aims to attract more investors to the market.
As regulatory restrictions ease and institutional interest intensifies, SBI’s cryptocurrency strategy has the potential to position Japan as a leading force in digital finance.
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