Ripple has partnered with major Japanese financial institutions to build a blockchain financial infrastructure that adheres to regulatory requirements. The goal is not simply to experiment with technology, but to validate an institutionally oriented Web3 model that can be utilized by actual banks and financial institutions.
Asia Web3 Alliance Japan, an Asian Web3 consortium, and Web3 Salon recently launched the Japan Financial Innovation Incubation Program (JFIIP), in partnership with Ripple and the Japanese financial sector. This program is an accelerator designed to support the development of regulatory-friendly financial solutions based on the XRP Ledger for Japanese startups.
JFIIP's most significant features are its "legitimacy and practical usability." Unlike typical cryptocurrency hackathons, it aims to build a financial infrastructure that banks and financial institutions can actually implement. It focuses on bridging the gap between traditional finance and blockchain technology.
The areas targeted for development are also clear. Key areas highlighted include Ripple's payment infrastructure, the stablecoin RLUSD, tokenization of real assets such as real estate, bonds, and raw materials, and credit and payment infrastructure usable in the financial sector. All of these areas directly connect to the existing financial system.
The program's symbolic nature is evident in the participating institutions. Strategic partners include financial institutions affiliated with Japanese megabanks, including Mizuho Bank and SMBC Nikko Securities. Securitize Japan, a leader in real-world asset tokenization in Japan, and HIRAC FUND, a venture capital firm focused on digital innovation, also joined the effort.
The initial funding provided to startups is modest, at around 1.55 million yen. However, key benefits include access to Ripple's global support program and direct mentoring from executives at major Japanese financial institutions.
Japan is considered a country with a relatively clear institutional framework for cryptoassets, stablecoins, and tokenized securities. Indeed, Japanese financial institutions have been actively exploring blockchain as a technology that can replace or complement existing financial infrastructure.
The fact that Ripple is exploring use cases for payment and tokenization of real assets based on XRP Ledger with Japanese megabanks is interpreted as an example of the network expanding beyond a simple means of remittance to the level of financial infrastructure.
