American model Bri Teresi recently discussed the potential role of XRP in Japan's reverse yen arbitrage trading, which is worth up to $45 trillion. Teresi pointed out that XRP has fast and Programmability settlement capabilities, meeting the needs of modern financial infrastructure. She emphasized that the bank for international settlements (BIS) recommends effective settlement of assets turning over 8 to 10 times daily to ensure Liquidity, while XRP's design turnover speed far exceeds this standard. Japan's SBI Remit has started using XRP for fast cross-border settlement.
Reverse arbitrage trading refers to investors borrowing funds in low interest rate countries and investing in high-yield assets to obtain differential returns. Japan has long maintained a low interest rate, even negative interest rate environment, giving rise to a large-scale yen arbitrage trading. According to data from the Japanese Ministry of Finance, the trading scale is approximately 4.2 trillion to 4.5 trillion USD. After the Bank of Japan ended negative interest rates and raised the benchmark rate in March 2024, some arbitrage trades triggered reverse operations, with about 40% of trades closed and the remaining 60% still ongoing.
Tracy's analysis suggests that such large-scale arbitrage trading reverse operations require fast and low-cost currency exchanges, whereas traditional channels are often slow and expensive. The high efficiency and strong security of XRP's cross-border transfers give it potential application value in such transactions. Japanese institutions have long collaborated with Ripple, and SBI Remit has utilized XRP in payments between Japan and the Philippines, as well as Japan and Indonesia, providing practical cases for its role in reverse arbitrage trading.
It points out that if a large amount of funds flows through XRP, its price may be significantly affected, even attracting high market attention. However, price predictions still carry uncertainty, and investors should treat them with caution.
Overall, the adjustment of Japan's policies, the application of XRP in Japan, and the flow of reverse arbitrage funds collectively form a market landscape worth paying attention to, providing new perspectives for the potential demand and application of XRP.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Africa’s cryptocurrency adoption skyrockets by 52%, with regulation and mobile payments accelerating the rapid spread of digital assets
Gate News updates: Africa’s cryptocurrency market is seeing rapid growth. According to Ripple’s latest report, the total on-chain transaction value in the region grew 52% year over year, a trend closely tied to more and more countries putting clear cryptocurrency regulatory rules in place. Countries such as South Africa, Nigeria, Kenya, and Mauritius are gradually bringing digital assets under financial supervision, giving businesses and users greater confidence and thereby boosting cryptocurrency adoption rates.
GateNews15m ago
XRP Critical Three Weeks: U.S. Senate Legislative Progress Could Decide Whether to Break Above $1.60 or Fall Below $1.20
As the XRP price enters a key policy window, the progress of the U.S. Senate's “CLARITY Act” over the next three weeks will affect its 2026 outlook. XRP is currently trading at about $1.34; if the bill passes smoothly, it could bring in $4.0 billion to $8.0 billion in capital inflows, driving the price higher. Otherwise, it will depend on the broader macro environment and could fall to below $1.20. Policy progress is the dominant factor right now, and April will become a crucial turning point.
GateNews2h ago
Grayscale: Quantum computing or early breakthroughs are accelerating—preparing for post-quantum encryption is urgent.
Grayscale research director said that technical breakthroughs in quantum computing could introduce uncertainty, so public blockchains need to accelerate the deployment of post-quantum cryptography. A Google paper highlights the time sensitivity of quantum risk, specifically noting that if quantum computers reach a certain number of logical qubits, they will threaten existing encryption systems. Solana and the XRP Ledger have already begun experimental deployments of post-quantum cryptography technology. While Bitcoin has lower technical risk, challenges still exist at the governance level.
MarketWhisper3h ago
Grayscale Recognizes XRP Ledger as Pioneer In Post-Quantum Cryptography - U.Today
Grayscale's Zach Pandl emphasizes the urgency for public blockchains to enhance security against quantum threats, citing Google's advancements in quantum computing. The XRP Ledger and Solana are recognized for their proactive post-quantum cryptography efforts as the 2029 deadline approaches.
UToday3h ago
XRP drops to $1.31, and a failed breakout combined with declining liquidity may trigger accelerated volatility
After failing to break above $1.35, the XRP price has fallen back to around $1.31, with an intraday drop of about 1.9%. The market shows clear selling pressure, and reduced liquidity is amplifying volatility; short-term sentiment is tilted toward defense. Key support is in the $1.31 to $1.30 range, and if it breaks down, it could test $1.28.
GateNews3h ago
