In a landmark move for cryptocurrency adoption in Japan, Rakuten Wallet, the digital asset arm of the e-commerce and financial giant Rakuten Group, has officially integrated XRP as a payment method. This integration, which launched quietly in early 2025 and is now fully operational, enables the platform's millions of users to convert their Rakuten loyalty points directly into XRP and spend the digital asset at a network of affiliated merchants across the country.
The mechanics create a closed-loop ecosystem, transforming static loyalty rewards into a dynamic, spendable digital currency. Rakuten Wallet now permits users to purchase XRP using Rakuten Points, which can then be used for payments via Rakuten Pay. The service taps into Rakuten's immense existing user base of 44 million and a merchant network exceeding 5 million, placing XRP inside one of Asia's most active digital commerce networks. Rakuten's points ecosystem holds over 3 trillion Rakuten Points, valued at approximately $23 billion.
The strategic integration leverages Japan's progressive regulatory framework, with Rakuten Wallet operating under a license from the country's Financial Services Agency (FSA). XRP is already the third most widely held digital asset on Japan's regulated exchanges, behind only Bitcoin and Ethereum. The move is seen as a significant test of a major cryptocurrency's utility for high-frequency, low-value retail transactions, diverging from its common positioning for cross-border settlements.
To mark the launch, Rakuten is running a promotional campaign offering users up to 100,000 yen in XRP rewards. The initiative is independent of Ripple, the company closely associated with XRP, which has not publicly acknowledged the move. Analysts view this as a strategic play by Rakuten to enhance the value of its entire loyalty ecosystem, increasing user engagement and retention by converting points into a liquid asset.
The development occurs as Japan's FSA is expected to finalize a crypto reclassification framework by mid-2026 that could reduce capital gains tax on digital assets from 55% to 20%, potentially improving the economics of holding and spending assets like XRP. The success of this integration is poised to influence other Japanese fintech platforms and shape the future of consumer-facing blockchain applications in the region.
