The CEO of Ripple, Brad Garlinghouse, recently told media that the company is considering a relocation to Japan. Other execs from the company previously mentioned Singapore as a possible place for a relocation. Ripple has been doing well in Japan, and has numerous connections within the Japanese banking market.
Garlinghouse told Bloomberg that,
“Japan has been one of our strongest markets. We have a very successful partnership there with a group called SBI. They are actually our largest outside investor, and the CEO there, Kitao-san, has been an innovator and pioneer in a lot things around finance and technology (of fintech)...I have spoken to the SBI team about the fact we are looking at the country as a potential destination.”
Why it matters: Despite having one of the most popular tokens as measured by market cap, Ripple has struggled with a number of factors in the USA. It isn't surprising to see Ripple looking for a more accommodate jurisdiction which is likely to help it grow its company. The US banking system has a lot to lose if Ripple becomes a global payments system, as it could eliminate large segments of the current investment banking model. As both a lender and payments provider, Ripple could eliminate the need for banks that handle international transfers and offer trade financing. With Ripple's existing connections in Japan, it would be easy for the company to leverage the Japanese financial system, and enter new markets.
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