In a recent social media statement, Yoshitaka Kitao, the CEO of SBI Holdings, refuted claims regarding the company possessing $10 billion in XRP tokens. This clarification emerged after a user suggested that SBI’s significant expansion into Asia was linked to a massive XRP position. Kitao emphasized that SBI’s financial exposure is primarily through its equity stake in Ripple Labs, rather than holding a large quantity of XRP tokens directly.
Kitao highlighted that SBI holds over 9% equity in Ripple Labs, making it an investor in the company rather than just a token holder. This distinction is crucial, as equity holdings do not fluctuate with the minute-to-minute price changes of cryptocurrencies, unlike token positions that are directly affected by market volatility.
Responding to the social media discourse, Kitao shared insights into the valuation of Ripple, which is estimated to exceed $50 billion in the private market. This valuation implies that SBI’s 9% stake could represent approximately $4.5 billion in worth, assuming no liquidity discounts are applied. However, Kitao noted that this market valuation might not capture the full extent of Ripple’s broader ecosystem or its value derived from partnerships and products.
The partnership between SBI and Ripple has been ongoing since 2016 and includes collaborative efforts in payments and blockchain settlement. SBI has positioned itself strategically in promoting Ripple-related services, particularly in Japan and surrounding regions.
In addition to his comments on XRP, Kitao announced SBI’s acquisition of a majority stake in Coinhako, a regulated cryptocurrency exchange based in Singapore. This acquisition is part of SBI’s wider strategy to expand its digital asset operations across Southeast Asia. Coinhako, which holds a license from the Monetary Authority of Singapore, will facilitate a pathway between Japan and the Southeast Asian markets, strengthening SBI’s foothold in the region.
Furthermore, Japan’s Finance Minister, Satsuki Katayama, has expressed support for testing blockchain-based securities settlements, with the Financial Services Agency willing to aid demonstrations by major securities firms. This initiative aims to enhance the process of securities trading and could potentially involve recording rights information on a distributed ledger. SBI Group’s alignment with such efforts indicates a broader interest in integrating stablecoins and improving cross-border settlement options.
As XRP continues to face market pressure, with a reported decline of more than 30% over the past month, it traded near $1.60, reflecting a slight recovery of around 10% within a 24-hour period. The developments with SBI and Ripple highlight a significant shift in the crypto landscape, showing how traditional financial institutions are increasingly intertwining with blockchain technology and digital currencies.
