SBI Holdings Chairman and CEO Yoshitaka Kitao has addressed recent speculation regarding the company’s financial involvement with the cryptocurrency XRP. He clarified that SBI does not hold $10 billion in XRP tokens but rather has significant equity in Ripple Labs, the company behind the digital asset. This clarification follows rampant social media discussions that suggested SBI had amassed a substantial XRP position, particularly in light of its recent business expansions in Asia, including the acquisition of the Singapore-based cryptocurrency exchange Coinhako.
SBI Holdings is a diversified financial conglomerate based in Japan, with operations spanning banking, securities, asset management, and digital asset services. Its various subsidiaries include both crypto platforms and traditional financial services, positioning it strategically across Japan and the broader Asian market.
In a public statement, Kitao underscored the importance of SBI’s equity stake in Ripple Labs, stating, “When it comes to Ripple Lab.’s total valuation, which obviously includes its ecosystem that Ripple has created, that would be enormous. SBI owns more than 9% of that much.” He further delineated the difference between direct token ownership and equity investment, saying, “Not $10 bil. in XRP, but around 9% of Ripple Lab. So our hidden asset could be much bigger.”
The distinction between equity exposure and token holdings is pivotal in understanding the financial risks involved. Direct ownership of XRP tokens would expose SBI to the volatility associated with daily crypto market fluctuations. In contrast, the company’s equity position in Ripple represents a strategic, long-term investment in the firm’s blockchain payment infrastructure. Recent valuations have placed Ripple above $50 billion, meaning that SBI’s 9% stake could have a paper value of approximately $4.5 billion. However, the actual value remains contingent on Ripple’s market dynamics.
Meanwhile, XRP, currently the fourth-largest cryptocurrency with a market cap of around $91 billion, has recently faced challenges. After experiencing a significant drop of double digits in trading earlier this week, the asset has stabilized around $1.45, albeit with a trading volume decline of about 28% to roughly $3.88 billion.
In line with its growth strategy, Ripple has been actively enhancing its services for institutional clients. Recently, the company upgraded its custody platform to offer improved security features, compliance measures, and staking capabilities, facilitating more efficient management of digital assets by banks and custodians. Furthermore, Ripple has obtained a full Electronic Money Institution licence in Luxembourg, which allows it to offer regulated payment and electronic money services throughout the European Union. This regulatory approval extends Ripple’s compliance reach into other significant markets.
Moreover, Ripple has inaugurated a new platform called Ripple Treasury, designed for corporate treasurers. This innovative platform enables the management of both traditional cash and digital assets in real-time, providing liquidity insights, cash forecasting, and settlement tools. This move reflects Ripple’s ambition to integrate conventional finance with blockchain technology, thus expanding its role in the evolving financial landscape.
