Ripple (XRP) is a cryptocurrency specifically designed for fast, low-cost international money transfers. Despite facing years of legal uncertainty and prolonged price stagnation, it remains one of the top digital assets by market capitalization—ranked 4th as of mid-2025.
While some investors question its long-term viability due to regulatory battles and centralized control concerns, others see strong growth potential driven by institutional adoption, technological advantages, and recent developments like ETF speculation and favorable court rulings.
This article explores why Ripple is often labeled "risky," evaluates its future outlook, compares it with key competitors like Stellar (XLM) and Solana (SOL), and provides practical guidance on how to buy XRP in Japan. Whether you're a beginner or experienced investor, this comprehensive guide will help you make informed decisions about XRP.
Why Ripple (XRP) Is Considered "Risky" – 5 Key Reasons
Despite its technological strengths, Ripple has earned a reputation for being “risky” among some investors. Here are the five most commonly cited reasons—and what they really mean.
Ongoing SEC Lawsuit
One of the biggest concerns surrounding XRP is its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). In December 2020, the SEC sued Ripple Labs, alleging that XRP was sold as an unregistered security.
The lawsuit caused immediate turmoil: major exchanges delisted XRP, and its price dropped sharply. However, in July 2023, a U.S. federal judge ruled that XRP itself is not a security when sold to retail investors—a partial victory for Ripple.
👉 Discover how regulatory clarity could unlock massive growth for XRP investors.
Although this decision boosted market confidence, the SEC has appealed, meaning the legal process continues. While the worst-case scenario appears less likely now, uncertainty remains until a final resolution.
Competing With SWIFT in Global Payments
Ripple aims to disrupt SWIFT, the decades-old global banking network used by thousands of financial institutions worldwide.
While SWIFT dominates cross-border payments, it's often slow (taking 3–7 days) and expensive. In contrast, RippleNet enables settlements in 3–5 seconds at a fraction of the cost.
However, SWIFT has deep institutional roots. Banks are cautious about switching systems, especially for large-scale infrastructure changes. This inertia means Ripple’s widespread adoption may take years—even if its technology is superior.
Still, growing partnerships with major banks suggest momentum is building.
Centralized Supply and Company Holdings
A significant concern is that Ripple Labs holds a large portion of XRP, raising fears about market manipulation or sudden sell-offs.
At launch, Ripple created all 100 billion XRP tokens. Initially, the company held around 60 billion, though it has since released much into circulation through escrow mechanisms.
As of 2025, over half of all XRP is in public circulation, but Ripple still controls billions held in reserve. While these are locked in smart contracts and released monthly, the perception of centralization persists.
This contrasts sharply with decentralized networks like Bitcoin, where no single entity controls supply distribution.
Centralized Network Governance
The XRP Ledger (XRPL) uses a unique consensus algorithm called RPCA (Ripple Protocol Consensus Algorithm), which relies on a limited number of validator nodes—around 100 globally.
Compare this to Bitcoin, which has over 1 million nodes validating transactions. More importantly, many XRPL validators are on Ripple’s recommended list, leading critics to label the network as centralized.
While this design allows faster transaction speeds and energy efficiency, it raises concerns about censorship resistance and long-term resilience if Ripple Labs faces legal or operational issues.
For purists who value decentralization above all, this remains a red flag.
Prolonged Price Stagnation Since 2018
After peaking near ¥380 per XRP in January 2018, the price collapsed within weeks and didn’t recover for over six years. By 2020, it had dipped below ¥10.
While Bitcoin and Ethereum reached new highs during the 2021 and 2024 bull runs, XRP lagged behind—fueling skepticism about its relevance.
However, starting in late 2024, XRP began gaining traction again due to improved legal clarity, political developments (discussed below), and growing enterprise use cases.
As of mid-2025, XRP trades between ¥300–¥500—a sign that investor sentiment is shifting positively.
6 Reasons Why Ripple (XRP) Has Strong Future Potential
Despite past challenges, several factors point to a promising future for XRP.
Legal Clarity Is Emerging
As of May 2025, Ripple and the SEC are reportedly moving toward a settlement, with Ripple agreeing to pay a $50 million fine. While not an outright win, this would effectively end years of regulatory ambiguity.
Historically, positive legal news has triggered sharp price increases. After the July 2023 partial court victory, XRP surged nearly 100% within days.
A full resolution could attract institutional investors who previously avoided XRP due to compliance risks.
👉 See how legal milestones could trigger the next wave of crypto adoption.
Lightning-Fast and Low-Cost International Transfers
XRP excels in one area: cross-border payments. Here's how it compares to other major cryptocurrencies:
- Bitcoin (BTC): ~10 minutes per transaction | ~¥7,955 fee
- Ethereum (ETH): ~15 seconds | ~¥1,913 fee
- Ripple (XRP): ~3–5 seconds | ~¥53 fee
These figures (as of May 2025) highlight XRP’s efficiency—especially for frequent traders moving funds between wallets or exchanges.
For businesses and remittance providers, these savings add up quickly. That’s why more financial institutions are integrating RippleNet into their operations.
Growing Expectations Around an XRP ETF
In May 2025, an XRP futures-based ETF launched on Nasdaq, marking a major step toward mainstream financial acceptance.
While not a spot ETF (which directly holds XRP), this product allows traditional investors to gain exposure without using crypto exchanges.
Given that BTC and ETH spot ETFs drove massive inflows after approval in 2024, markets are watching closely for similar momentum with XRP.
If a spot ETF is approved in the future, it could bring billions in new capital into the ecosystem.
Widespread Adoption by Financial Institutions
RippleNet powers real-world payment solutions across dozens of countries. Major institutions already using or testing Ripple’s technology include:
- SBI Holdings
- Mizuho Financial Group
- MUFG (Mitsubishi UFJ Financial Group)
- Bank of America
- Chipper Cash (Africa-focused payments startup)
These partnerships validate XRP’s utility beyond speculation—they’re using it to solve actual business problems in global finance.
More integrations mean higher demand for XRP as a bridge currency in multi-currency settlements.
Launch of RLUSD – A Corporate-Focused Stablecoin
In 2024, Ripple launched RLUSD, a U.S. dollar-backed stablecoin designed for enterprise use.
Unlike speculative tokens, RLUSD maintains a 1:1 peg to the USD and is backed by U.S. Treasuries. It’s also licensed by the New York State Department of Financial Services—making it compliant for regulated institutions.
With over ¥44 billion in market cap (as of May 2025), RLUSD ranks among the top 15 stablecoins globally.
Its success strengthens Ripple’s position as a full-stack financial infrastructure provider—not just a payment rail.
Political Tailwinds: Trump’s Pro-Crypto Stance
Starting in late 2024, XRP saw a notable price surge following Donald Trump’s re-election as U.S. president.
During his campaign, Trump expressed strong support for cryptocurrency innovation and even proposed holding digital assets in the U.S. strategic reserve—specifically naming XRP as a potential candidate.
While policy details remain unclear, market sentiment interpreted this as bullish for XRP. The token rose nearly 30% after his election was confirmed.
Political support from influential leaders can significantly impact regulatory attitudes—and investor confidence.
What Is Ripple (XRP)? A Deep Dive
| Detail | Information |
|---|---|
| Full Name | Ripple (XRP) |
| Symbol | XRP |
| Max Supply | 100 billion |
| Consensus Algorithm | RPCA |
| Market Cap Rank (Mid-2025) | #4 |
| Launch Year | 2012 |
| Primary Use Case | Cross-border payments |
| Key Network | RippleNet |
Developed by Ripple Labs in 2012, XRP was built to modernize international finance. Instead of relying on slow correspondent banking networks, financial institutions use RippleNet—a real-time gross settlement system powered by XRP as a bridge asset.
Transactions settle in seconds, with minimal fees—making it ideal for banks, payment providers, and remittance services looking to improve speed and reduce costs.
Its growing adoption reflects strong fundamentals beyond price speculation.
Price History: From Bubble Highs to Recovery
- 2012: Launched under ¥1
- Jan 2018: Peaked at ~¥380 during crypto boom
- 2020: Fell to ~¥10 amid bear market and SEC lawsuit
- Nov 2024 – Jan 2025: Began recovery on positive news
- Jan 27, 2025: Hit ¥470 high
- May 2025: Trading around ¥330–¥350
After years of underperformance, XRP is showing signs of renewed momentum—driven by legal progress and institutional adoption.
How Does XRP Compare to Competitors?
Let’s examine two key rivals: Stellar Lumens (XLM) and Solana (SOL).
Stellar Lumens (XLM) – Focused on Peer-to-Peer Payments
Like XRP, Stellar uses a fast consensus protocol optimized for cross-border transfers. However:
- Lower transaction fee (~¥0.44 vs ¥53 for XRP)
- Targets individuals and microtransactions
- Strong focus on financial inclusion in emerging markets
While technically similar, Stellar positions itself as more decentralized and community-driven than Ripple.
For personal remittances or micropayments, XLM may be more cost-effective than XRP.
Solana (SOL) – A Multi-Functional Blockchain Platform
Solana isn’t just a payment coin—it’s a high-performance blockchain supporting DeFi, NFTs, and Web3 apps.
- Extremely fast (~65,000 TPS) and low-cost transactions
- Hosts thousands of dApps
- Grew rapidly since 2020; now ranked #6 by market cap
While Solana supports payments, its scope is broader than XRP’s narrow focus on global settlements.
Investors seeking innovation beyond payments might prefer SOL—but those prioritizing real-world banking integration may lean toward XRP.
How to Buy XRP in Japan – Step-by-Step Guide
You can purchase XRP through regulated Japanese exchanges. Here’s how:
- Open an account at a licensed exchange (e.g., Coincheck, BITPOINT, bitbank)
- Complete identity verification
- Deposit JPY via bank transfer or convenience store
- Choose “Buy” under XRP listing
- Select “Spot Market” or “Exchange” trading mode
- Confirm purchase
Most platforms offer mobile apps for easy access.
👉 Start exploring your crypto investment options today.
Frequently Asked Questions About XRP’s Future
Is Google pulling out of Ripple?
No credible evidence suggests Google has exited its involvement with Ripple. In fact, GV (formerly Google Ventures), Alphabet’s venture arm, has invested in Ripple and continues to support its development.
How long should I hold XRP?
There’s no universal answer—it depends on your goals. Many hold through volatility expecting long-term gains from adoption or legal wins. Always invest only surplus funds you can afford to hold for several years.
Can XRP reach ¥500,000 or ¥1 million?
Unlikely. With 100 billion tokens issued, such prices would imply an impossible market cap exceeding global GDP. Realistic targets based on fundamentals suggest potential for ¥1,000–¥3,000 range under strong adoption scenarios—but not five-digit figures.
What happens if Ripple wins the SEC case?
A full victory could trigger significant price appreciation—potentially 1.5x to 2x based on past reactions. However, markets often front-run news, so immediate spikes may be short-lived.
Will I still be able to trade XRP on exchanges if it gets an ETF?
Yes. ETF approval does not remove existing trading options. Just like Bitcoin and Ethereum continue trading on exchanges post-ETF launch, XRP will remain available on crypto platforms—with potentially higher liquidity due to increased interest.
Final Thoughts: Is Now a Good Time to Invest in XRP?
Ripple (XRP) has faced unique challenges—regulatory scrutiny, centralization concerns, and years of price stagnation—that have led some to question its future.
Yet its core strengths remain compelling: ultra-fast settlements, low fees, proven adoption by major banks, and expanding enterprise use cases via products like RLUSD.
With legal headwinds easing and political support growing, XRP may finally be entering a new phase of growth—not just as a speculative asset but as a foundational piece of next-generation financial infrastructure.
If you believe in the future of efficient global payments powered by blockchain technology, XRP deserves serious consideration as part of a diversified portfolio.