The future of global payments is being reshaped by blockchain innovation, and Ripple is at the forefront of this transformation. In a significant development for financial technology in Asia, Ripple has officially launched its On-Demand Liquidity (ODL) service in Japan through a strategic partnership with SBI Remit—the country’s largest money transfer provider. This marks the first live implementation of ODL on RippleNet within Japan, unlocking faster, more cost-efficient cross-border transactions between Japan and the Philippines.
Backed by robust enterprise blockchain infrastructure, ODL leverages the digital asset XRP to eliminate the need for pre-funded accounts in foreign currencies. This breakthrough enables financial institutions to free up working capital, reduce operational overhead, and deliver near-instant settlements—particularly vital in high-frequency remittance corridors like Japan to the Philippines.
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A Strategic Expansion in a Key Market
Japan has long been recognized as a pivotal market for fintech innovation, especially in the realm of digital payments and cryptocurrency adoption. With progressive regulatory frameworks and growing demand for efficient remittance solutions, the country presents ideal conditions for ODL deployment.
SBI Remit, a subsidiary of the prominent SBI Group, has connected with Coins.ph—one of the leading mobile wallet platforms in the Philippines—and SBI VC Trade, a licensed digital asset exchange, via RippleNet. This tripartite integration allows seamless, real-time fund transfers powered by XRP, significantly reducing settlement times from days to seconds.
Asheesh Birla, General Manager of RippleNet at Ripple, emphasized the importance of this milestone:
“The expansion of our relationship with SBI Remit to kickstart RippleNet’s ODL service in Japan marks a major milestone in one of our largest markets. We are excited to partner with forward-looking companies that see the value in blockchain technology and are preparing for a crypto-enabled future.”
This collaboration not only enhances customer experience but also strengthens Ripple’s footprint across the Asia-Pacific (APAC) region, where cross-border payment volumes are surging.
Addressing High Costs and Inefficiencies in Remittances
Despite Japan’s advanced financial infrastructure, it remains one of the most expensive countries from which to send remittances. According to the World Bank, the average cost of sending money from Japan is 10.5%, far above the G8 average of 5.92%. These high fees disproportionately affect low-income migrant workers who rely on affordable, reliable channels to support families abroad.
The Filipino diaspora in Japan—the third-largest foreign worker group—sent approximately $1.8 billion back home in 2020 alone. Traditional banking systems require intermediaries, pre-funded nostro accounts, and complex reconciliation processes—all contributing to delays and inflated costs.
With ODL, RippleNet users can bypass these inefficiencies. Instead of pre-funding accounts in PHP (Philippine Peso), SBI Remit now uses XRP as a bridge currency. Funds are converted into XRP on the sender side, transmitted across the network in seconds, and instantly converted into PHP upon receipt. This liquidity-on-demand model reduces dependency on idle capital and slashes transaction fees by up to 40–60%.
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Powering Financial Innovation Across APAC
The Asia-Pacific region is experiencing exponential growth in blockchain-based payment solutions. RippleNet transaction volume in APAC grew 130% year-over-year, driven by rising e-commerce activity, increasing remittance flows, and supportive regulatory environments in countries like Singapore, Thailand, and Japan.
SBI Remit’s adoption of ODL positions it alongside other leading APAC fintechs such as Novatti and Tranglo, which have successfully integrated Ripple’s technology into their operations. As a fiat on-ramp and off-ramp provider on RippleNet, SBI Remit plays a critical role in bridging traditional banking systems with decentralized financial infrastructure.
Nauman Mustafa, CEO of Coins.ph, highlighted the transformative potential:
“Fintech innovation is the key to achieving quicker and more secure financial transactions. With the support of SBI Remit and Ripple, we look forward to enabling greater customer experiences by bringing faster and cheaper cross-border payments between Japan and the Philippines.”
Looking ahead, SBI Remit plans to extend ODL-powered services beyond the Philippines to other Southeast Asian markets, further expanding access to inclusive financial services.
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Frequently Asked Questions (FAQ)
Q: What is On-Demand Liquidity (ODL)?
A: ODL is a blockchain-based solution developed by Ripple that uses XRP as a bridge currency to enable instant cross-border payments without requiring pre-funded accounts in destination currencies.
Q: How does ODL reduce costs for remittances?
A: By eliminating the need for pre-funding and reducing reliance on multiple intermediary banks, ODL cuts operational expenses and lowers transaction fees—often by over 50% compared to traditional methods.
Q: Why is Japan an important market for ODL?
A: Japan has high remittance costs and a large foreign workforce, particularly from the Philippines. It also supports progressive fintech regulation, making it ideal for testing and scaling innovative payment technologies.
Q: Is XRP used directly by consumers?
A: No—consumers send fiat currency (like JPY), which is converted into XRP behind the scenes for rapid transmission, then converted back into local currency (like PHP) at the receiving end. The process is seamless and invisible to end users.
Q: Who are the main partners in this initiative?
A: The key partners are Ripple (technology provider), SBI Remit (Japanese remittance service), Coins.ph (Philippine mobile wallet), and SBI VC Trade (digital asset exchange).
Q: Can ODL be expanded to other countries?
A: Yes—SBI Remit plans to extend ODL services to additional Southeast Asian markets. RippleNet already supports ODL corridors across multiple regions globally.
The Road Ahead: Scaling Crypto-Enabled Finance
With SBI Holdings also serving as an investor and shareholder in Ripple, this partnership reflects a deep alignment of vision—bridging traditional finance with decentralized innovation. As more institutions recognize the efficiency gains offered by blockchain-based liquidity solutions, adoption is expected to accelerate across banks, payment providers, and digital wallets.
The launch of ODL in Japan isn’t just a technical upgrade—it’s a foundational shift toward a more inclusive, efficient global financial system. By unlocking trapped capital and enabling real-time settlements, Ripple and its partners are setting a new standard for what cross-border payments can achieve.
For businesses and consumers alike, the benefits are clear: faster transactions, lower fees, and broader financial access—all powered by secure, scalable blockchain technology.