In 2018, the Japanese financial services group SBI Holdings announced the launch of a payment application called MoneyTap on Ripple’s blockchain technology. MoneyTap was designed to allow domestic bank customers to conduct instant transactions at any time using a QR code, phone number, or bank account. In 2020, SBI’s plan to use MoneyTap in Japanese ATMs was reported by CNF.
At the time, Japan’s national payment clearing platform, Zengin, only allowed domestic money transfers during limited hours. After six years since its launch, MoneyTap has become a successful payment platform with millions of users and a high level of engagement. Renowned analyst WrathofKahneman mentioned that several banks, such as Shinonome Shinkin Bank and Nagoya Bank, have partnered with SBI to utilize MoneyTap for international remittance services.
WrathofKahneman also highlighted the significant increase in SBI’s cumulative international remittance, reaching $13 billion for the year. SBI Holdings, the parent company, initially launched MoneyTap through SBI Ripple Asia, a joint venture with Ripple. In 2019, MoneyTap became a separate entity and a wholly-owned subsidiary of SBI Holdings. In 2021, Ripple acquired 33% of that subsidiary.
Discussing the partnerships between MoneyTap and banks, WrathofKahneman noted that over 200 Shinkin banks collaborating for international remittance are larger than US credit unions. These banks play crucial roles in the Japanese banking industry and offer a diverse geographical reach.
As of 2021, MoneyTap had support from various financial institutions in Japan, including Sumitomo SBI Net Bank, Daiwa Securities Group Headquarters, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Ashikaga Bank, Ogaki Kyoritsu Bank, and Seven Bank. Ripple’s investment in MoneyTap in 2020 renewed its relationship with SBI, and multiple banks and financial institutions in Japan are reportedly integrating XRP for various applications.
Research by Dr. Hossein Hassani, Xu Huang, and Emmanuel Silva confirmed Ripple’s partnerships with up to 80% of the Japanese banking industry. The Japan Virtual and Cryptocurrency Exchanges Association (JVCEA) has approved 31 regulated crypto exchanges to list XRP. The adoption of crypto and blockchain technology in major financial institutions is not limited to Japan, with BNP Paribas, UBS, and HSBC also exploring and implementing blockchain solutions to enhance operations.