Japan may be on the verge of making crypto purchases and everyday spending far more practical — and Rakuten just put a mainstream on-ramp right in millions of consumers’ pockets.
Why it matters
Policymakers in Tokyo are reviewing a proposal to cut capital gains taxes on digital assets from as high as 55% to about 20%. If approved, that tax cut would materially change the economics of holding and spending crypto for Japanese consumers, turning what is often a taxed investment decision into a more usable payment option.
Rakuten brings XRP to the masses
This week Rakuten Wallet launched a feature allowing users in Japan to convert Rakuten Points directly into XRP. Once converted, those tokens can be traded within the Wallet app or spent through Rakuten Pay at more than 5 million merchant locations across the country — effectively putting XRP into one of Japan’s largest retail payment networks rather than limiting it to crypto-native platforms.
Scale and reach
The numbers behind the rollout are striking: Rakuten’s loyalty ecosystem contains over 3 trillion points (roughly $23 billion in value), and some 44 million Rakuten Pay users are now reachable through the new feature. Rakuten operates across e-commerce, banking and telecommunications in Japan and processes trillions of yen in transactions annually — giving this integration an unusually broad mainstream audience.
Industry response
Ripple’s senior ecosystem growth manager Tatsuya Kohrogi highlighted that most Rakuten users reached by this move have never engaged with crypto before, underscoring the potential to onboard a large non-crypto-native population. RippleX confirmed the rollout on X, noting users can convert points into XRP, spot trade in-app, and spend across the merchant network.
Market reaction and caution
Social sentiment for XRP in Japan jumped to its second-highest level in two years following the announcement. That said, analysts caution that sentiment spikes don’t necessarily translate into immediate price moves; longer-term impact will depend on whether users continue to convert, hold and spend XRP after the initial novelty wears off. As of writing, XRP traded at $1.36, up about 3.25% over the past month.
Bigger picture
This push fits into Ripple’s longer-term Japan strategy — the company has been active in the market since at least 2016 through partnerships such as with SBI Group for XRP-based cross-border transfers. Ripple is also planning to introduce its RLUSD stablecoin via platforms in Japan, further expanding its payments and settlement ambitions in the country.
Bottom line
A potential tax cut combined with Rakuten’s massive loyalty and merchant network could accelerate everyday crypto use in Japan, turning points and rewards into a practical on-ramp for millions — provided regulatory changes stick and users keep transacting beyond the initial wave of interest.
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