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RIPPLE LEVERAGES BANKING GIANTS TO REVIVE STAGNANT XRPL ON-CHAIN ACTIVITY
As 2025 draws to a close, Ripple Labs is significantly deepening its strategic entrenchment in Japan, launching a high-profile innovation program aimed at professionalizing the XRP Ledger (XRPL) ecosystem. By partnering with the country's largest financial institutions including Mizuho Bank and SMBC Nikko Securities Ripple is attempting to create an institutional "flywheel" for stablecoins and real-world asset (RWA) tokenization. This aggressive push serves as a vital countermeasure to a troubling trend on-chain, where DeFi capital on the XRPL has plummeted by nearly 50% since July, highlighting a growing rift between Ripple's corporate successes and the network's actual retail utility.
I. The Innovation Program: Identifying the Next RWA Giants
The newly unveiled Japan Financial Infrastructure Innovation Program (JFIIP) is more than just a startup accelerator; it is a strategic filter for Ripple’s massive capital reserves:
Strategic Verticals: The program, which runs until mid-January 2026, is laser-focused on three high-value pillars: stablecoins, credit infrastructure, and RWA tokenization. Startups are offered initial $10,000 grants, which serve as a low-cost funnel for Ripple to identify candidates for its much larger 1 billion XRP developer fund dedicated to Japan and Korea.
Banking Backing: In a rare display of institutional unity, the program has secured support from Japan’s banking establishment, including Mizuho Bank, SMBC, and Securitize Japan. This partnership aims to leverage Japan’s forward-thinking regulatory environment to build compliant, institutional-grade solutions on the XRPL.
II. The On-Chain Paradox: Institutional Hype vs. DeFi Decline
Despite the flurry of corporate announcements, the underlying health of the XRP Ledger ecosystem is currently under significant pressure:
TVL Collapse: Data from DefiLlama reveals that the Total Value Locked (TVL) on the XRPL has crashed from a July peak of $120 million to just $62 million. This nearly 50% drawdown suggests that even as Ripple secures banking partners, liquid capital is exiting the network’s DeFi protocols.
The RWA Competition: In the critical race for asset tokenization, the XRPL currently ranks ninth globally with approximately $213 million in assets. While substantial, it lags far behind market leaders like Ethereum and newer Layer-1 competitors that have been more effective at capturing the lion’s share of the RWA market in 2025.
III. Conclusion: Building an "Immune" Ecosystem for 2026
The short-term outlook for Ripple in Japan is a high-stakes test of the "institutional-first" philosophy. By entrenching the XRPL directly into the plumbing of the Japanese banking system, Ripple is betting that it can create a "sticky" ecosystem that is immune to the speculative volatility and retail-driven cycles of the broader crypto market.
Final Take: The JFIIP represents Ripple's attempt to bridge the gap between corporate infrastructure and on-chain activity. If these new startups can successfully launch tokenized credit and stablecoin products with the backing of Mizuho and SMBC, the XRPL could see a massive re-injection of capital in early 2026. However, if the TVL continue to bleed despite these partnerships, it may signal that institutional "interest" is not yet translating into institutional "liquidity."
⚠️ Important Disclaimer
This analysis is for informational and educational purposes only and is based on analyst reports, partnership announcements, and on-chain metrics. It is not financial advice, nor should it be construed as a recommendation to buy, sell, or hold any security or cryptocurrency. The cryptocurrency market is highly speculative, and institutional partnerships do not guarantee price appreciation or network growth. Readers must conduct their own comprehensive research (DYOR) and consult with a qualified professional before making any investment decisions.

Landmark crypto Bills Drive 2025 Regulatory Shift as Congress Signals Commitment to Digital Asset
U.S. crypto regulation advanced sharply in 2025 as Congress set stablecoin rules, embraced regulated digital finance and accelerated market structure efforts, marking a broad legislative push that brought long-sought clarity to digital assets.
CRYPTO LEGISLATION HITS CRITICAL MASS IN 2025 WITH STABLECOINS SETTLED AND MARKET STRUCTURE IN MOTION
The year 2025 marked a pivotal shift in U.S. cryptoregulation as Congress moved away from enforcement-driven policy toward clearer statutory frameworks. While lawmakers delivered a definitive outcome on stablecoins, progress on market structure, tax policy, and CBDCissues remained uneven, reflecting both bipartisan momentum and unresolved regulatory complexity across digital asset markets.
The most consequential development was the enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS, Act, signed into law in July. As the first comprehensive federal crypto statute, GENIUS removed payment stablecoins from securities and commodities law, assigning oversight to banking regulators rather than the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). U.S. Senator Kirsten Gillibrand (D-NY) commented:
This bill will enable U.S. businesses and consumers to take advantage of the next generation of financial innovation. A product of months of bipartisan negotiations, the GENIUS Act will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar.
Issuers must fully back stablecoins with cash or short-term U.S. Treasurys, are prohibited from paying yield, and must comply with Bank Secrecy Act requirements. The law also introduced a tiered oversight model, allowing state regulation for issuers below $10 billion in market capitalization while requiring federal supervision for larger players. From a policy perspective, GENIUS signals a strategic U.S. commitment to regulated private stablecoins as the preferred vehicle for digital dollar payments, effectively sidelining near-term prospects for a retail central bank digital currency.
Outside of stablecoins, Congress advanced but did not finalize a new market structure regime for crypto assets. The House passed the Digital Asset Market Clarity, or CLARITY, Act, which seeks to define when tokens qualify as digital commodities subject to CFTC oversight and proposes a “ blockchain maturity” pathway allowing assets to transition out of securities regulation as networks decentralize.
In response, the Senate Agriculture Committee released the bipartisan Boozman-Booker discussion draft, which takes a more prescriptive approach by granting the CFTC exclusive jurisdiction over spot digital commodity markets and imposing strict custody, asset segregation and consumer protection requirements. While the two proposals differ in methodology, both reflect a shared conclusion that the CFTC should regulate non-security crypto spot markets. Reconciling definitions, jurisdictional boundaries and regulatory rigor remains the central legislative task heading into 2026. Senator Cory Booker (D-NJ) opined:
This bipartisan discussion draft would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.
Congress also addressed several high-impact peripheral issues without delivering comprehensive resolution. The House passed the CBDC Anti-Surveillance State Act, limiting the Federal Reserve’s ability to issue a central bank digital currency without explicit congressional approval, effectively placing a legislative brake on a U.S. CBDC. Separately, lawmakers nullified the IRS “DeFi broker rule” using the Congressional Review Act, protecting non-custodial wallets and decentralized protocols from unworkable tax reporting mandates while preserving obligations for custodial intermediaries.
Alongside White House guidance urging regulators to move away from regulation by enforcement, these actions reinforced a broader shift in tone. For market participants, 2025 provided meaningful certainty in high-risk areas while leaving final market structure decisions as the defining regulatory catalyst for the next phase of U.S. crypto policy.
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