The global remittance landscape is undergoing a transformation driven by blockchain innovation, and a new collaboration between Ripple and Japan’s SBI Holdings is set to accelerate this shift. SBI Remit, a subsidiary of SBI Holdings—one of Japan’s most influential financial and venture capital groups—has announced the launch of SBI Ripple Asia, a joint venture with Ripple, to expand XRP-powered cross-border payment services into key Southeast Asian markets: the Philippines, Vietnam, and Indonesia.
Starting in September 2025, this initiative will enable faster, more affordable, and scalable international money transfers directly into local bank accounts in these countries. The service will operate in partnership with Tranglo, a licensed cross-border payments provider, and leverage Ripple’s On-Demand Liquidity (ODL) solution, which uses XRP as a digital bridge currency between fiat currencies.
This strategic expansion marks a significant milestone in the adoption of blockchain-based remittance technology and highlights the growing confidence in Ripple’s infrastructure amid evolving regulatory clarity.
How Ripple’s ODL Works with XRP as a Bridge Currency
At the core of this remittance expansion is Ripple’s On-Demand Liquidity (ODL), a blockchain-powered solution that eliminates the need for pre-funded nostro accounts—traditional bank accounts held in foreign currencies that are costly and inefficient to maintain.
Instead, ODL uses XRP as an intermediate digital asset to facilitate real-time value transfer across borders. Here's how it works:
- A sender in Japan initiates a remittance through SBI Remit.
- The Japanese yen (JPY) is converted into XRP on a supported digital asset platform.
- XRP is instantly transmitted across the RippleNet network to the destination country.
- Upon arrival, XRP is converted into the local currency—Philippine peso (PHP), Vietnamese dong (VND), or Indonesian rupiah (IDR).
- Funds are deposited directly into the recipient’s bank account via Tranglo’s local payout network.
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This entire process typically takes seconds, with significantly lower transaction costs compared to traditional wire transfers or legacy payment rails like SWIFT.
Since 2017, SBI Remit has been a pioneer in adopting Ripple’s technology. In 2021, it became the first remittance provider in Japan to use XRP for cross-border payments, initially offering transfers from Japan to digital wallets in the Philippines. The new phase extends this capability to direct bank-to-bank transfers, greatly improving accessibility for recipients who may not use cryptocurrency wallets.
Strategic Role of Tranglo in Regional Expansion
Tranglo, a Malaysia-based cross-border payments enabler licensed in multiple jurisdictions, plays a critical role in this ecosystem by handling the final leg of the transaction—local settlement. When a payment request is submitted via SBI Remit, Tranglo processes the disbursement to the recipient’s bank account in the target country using its established partnerships with local financial institutions.
This collaboration ensures compliance with regional regulations and enables seamless integration into existing banking infrastructures. By combining Ripple’s real-time settlement layer with Tranglo’s payout capabilities, SBI Ripple Asia can deliver reliable, transparent, and cost-efficient remittance services at scale.
For millions of migrant workers sending money home from Japan to Southeast Asia, this means faster access to funds, reduced fees, and greater financial inclusion.
Ripple’s Global Momentum Amid Regulatory Progress
The timing of this expansion aligns with a pivotal moment in Ripple’s journey. After years of legal uncertainty due to the U.S. Securities and Exchange Commission (SEC) lawsuit—which questioned whether XRP should be classified as a security—Ripple has gained significant regulatory clarity.
In a landmark ruling, a U.S. court determined that XRP is not inherently a security, especially when sold on public exchanges to retail investors. This decision has restored confidence among financial institutions and opened doors for renewed partnerships in the United States and beyond.
Ripple has also strengthened its compliance infrastructure by acquiring Fortress Trust, a crypto-focused custodian that holds money transmitter licenses across eight U.S. states. This acquisition enhances Ripple’s ability to offer regulated financial services and supports its broader mission of modernizing global payments.
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Beyond ODL, Ripple is actively involved in central bank digital currency (CBDC) initiatives. It has partnered with nations like Palau, Bhutan, and Montenegro to develop CBDC platforms using its private ledger technology. These efforts position Ripple not just as a player in retail remittances but as a foundational force in next-generation financial infrastructure.
Why Southeast Asia Is a Key Market for Blockchain Remittances
Southeast Asia is one of the world’s most active remittance corridors. According to the World Bank, the region received over $130 billion in inward remittances in 2024, driven largely by labor migration to countries like Japan, South Korea, and Singapore.
Countries such as the Philippines, Vietnam, and Indonesia have large populations working abroad whose earnings support families back home. Traditional remittance channels often charge high fees—sometimes exceeding 5%—and suffer from slow processing times.
Blockchain-based solutions like ODL address these pain points directly:
- Lower costs: Transaction fees can be reduced by up to 40–60% compared to traditional providers.
- Faster settlement: Transfers that once took 2–5 business days now complete in under a minute.
- Greater transparency: Users receive real-time updates on transaction status and exchange rates.
- Financial inclusion: Recipients without bank accounts can still benefit via cash pickup or mobile wallet integration.
As digital adoption accelerates across Southeast Asia—with rising smartphone penetration and government-backed fintech initiatives—the stage is set for blockchain-powered remittances to go mainstream.
Frequently Asked Questions (FAQ)
Q: What is On-Demand Liquidity (ODL)?
A: ODL is Ripple’s solution that uses XRP as a bridge currency to enable instant, low-cost cross-border payments without pre-funding accounts in foreign currencies.
Q: Is XRP being used as a currency in these transactions?
A: Yes, XRP acts as an intermediate digital asset during the transfer process but is not held by end users. It is automatically converted into local fiat upon arrival.
Q: Who operates the new joint venture?
A: SBI Ripple Asia is a joint venture between SBI Remit (a subsidiary of SBI Holdings) and Ripple, focused on expanding blockchain-based remittance services in Asia.
Q: Are there any risks involved in using XRP for remittances?
A: While XRP price volatility could theoretically affect spreads, Ripple and its partners use hedging mechanisms and real-time pricing to minimize exposure for users.
Q: Can individuals in Japan send money via this service now?
A: Yes, starting September 2025, customers of SBI Remit can send funds to bank accounts in the Philippines, Vietnam, and Indonesia using the new ODL-powered system.
Q: How does this benefit recipients in Southeast Asia?
A: Recipients get faster access to funds, lower fees, and direct deposits into their bank accounts—improving convenience and financial security.
The launch of SBI Ripple Asia underscores a growing trend: traditional financial institutions are increasingly embracing blockchain technology not as a speculative tool, but as a practical solution for real-world problems. With support from major players like SBI Holdings and progress on the regulatory front, Ripple is well-positioned to drive broader adoption of efficient, inclusive, and transparent cross-border payment systems across Asia and beyond.