Japanese Giant Gumi Makes $17 Million Bet on XRP Over Bitcoin

• Gumi’s XRP buy is over double its earlier ¥1B Bitcoin purchase.
• The firm aims to expand XRP’s role in remittance and liquidity markets.
• Analysts say XRP is consolidating, with a breakout above $3.08 imminent.

Japanese mobile gaming company Gumi, backed by financial giant SBI Holdings, has announced plans to purchase ¥2.5 billion ($17 million) worth of XRP over the next five months. 

The move is part of Gumi’s broader growth strategy for blockchain adoption and marks one of the largest institutional treasury allocations into XRP so far.

Gumi’s XRP Bet is More Than Double Its Bitcoin Buy

This isn’t Gumi’s first crypto purchase, but it is its most aggressive. The company’s previous treasury allocation was a ¥1 billion buy of Bitcoin. This new ¥2.5 billion allocation into XRP is more than double that bet, showing a clear preference for XRP’s utility in payments and liquidity.

In a statement, Gumi said the purchase is aimed at “contributing to the expansion of the XRP ecosystem, which plays an important role in international remittance and liquidity network strategies primarily promoted by SBI Holdings.”

Attorney and XRP supporter Bill Morgan commented on the news, saying that this marks another step forward in institutional adoption. He wrote:

“This treasury move was larger than Gumi’s previous ¥1 billion purchase of bitcoin and shows increasing institutional adoption of XRP as a treasury asset,”

Related: XRP ETF vs. Bitcoin: Will ‘Capital Rotation’ Sink the King?

Macro Catalysts: Trump, SWIFT, and SEC Aligning for XRP

The timing of Gumi’s purchase comes as several other macro factors are converging around XRP. Earlier this year, Donald Trump mentioned XRP by name when discussing the possibility of creating a U.S. crypto reserve. While no follow-up action has been taken, the comments alone fueled speculation about a possible role for XRP at the policy level.

Related: Raoul Pal Maps Out Altcoin Season: ETH, SOL, XRP Take the Lead

Meanwhile, SWIFT recently confirmed that it has started testing blockchain-based payment rails, including the XRP Ledger and Hedera Hashgraph. From a regulatory standpoint, Ripple has also concluded its long-standing lawsuit with the SEC, clearing a major cloud of uncertainty. 

XRP Price Outlook: Breakout on the Horizon?

But all this positive news hasn’t hit XRP’s price chart, just yet. Analyst Casi Trades said that XRP has been coiling tightly, with price action holding above a crucial .382 support level at $2.99.

According to Casi, a breakout above $3.08, followed by a successful retest of that level as support, could confirm a bullish continuation. The price action is tightening right to the apex, and a breakout is imminent, the analyst said.