SBI Holdings CEO Yoshitaka Kitao has addressed recent misconceptions regarding the company’s investment in XRP, clarifying that they do not hold $10 billion in XRP tokens. Instead, SBI maintains a significant equity stake—9%—in Ripple Labs, the entity behind the XRP ledger. This distinction is crucial, as it positions SBI to benefit from Ripple’s growth without directly being exposed to the volatility associated with holding the cryptocurrency.
Kitao’s remarks came after a user on social media platform X speculated about SBI’s holdings, linking it to the firm’s recent expansion into Singapore. Highlighting the risks involved in holding a large amount of XRP, he noted that owning equity in Ripple Labs provides SBI with a stable foundation in the cryptocurrency ecosystem.
SBI’s investment in Ripple positions it well to capitalize on the firm’s ongoing innovations in blockchain technology and its expanding network of institutional partnerships. This relationship ensures that SBI aligns itself with Ripple’s long-term business ventures rather than getting caught up in the frequently fluctuating prices of XRP.
The potential growth of Ripple’s ecosystem, which has gained traction as a significant facilitator of cross-border payments and decentralized finance (DeFi), has led to speculation that the company’s valuation could surpass $50 billion. Given this valuation, SBI’s 9% stake translates to an estimated worth of approximately $4.5 billion today. Kitao has referred to Ripple’s ecosystem as a “hidden asset” that is not yet adequately represented in SBI’s book value, suggesting that its true worth could become apparent as Ripple solidifies its position in the fintech space.
Since its partnership began in 2016, SBI has been a strong proponent of Ripple, actively engaging in initiatives that further both companies’ goals within the cryptocurrency and blockchain sectors. Recently, SBI has also taken strategic steps, such as acquiring a majority stake in Coinhako, a regulated cryptocurrency exchange in Singapore, as part of its aim to establish a digital asset corridor between Japan and Southeast Asia. This move underscores SBI’s commitment to fostering institutional adoption of XRP.
Through its ongoing collaboration with Ripple, SBI is poised to benefit from emerging applications for XRP, including cross-border payment solutions and real-time settlement services. Additionally, the firm has supported Ripple’s efforts, such as participating in the $1 billion treasury initiative alongside Evernorth Holdings, aimed at enhancing XRP’s use in institutional contexts.
In the cryptocurrency market, XRP has experienced a brief rebound following a recent downturn, with prices currently trading at $1.56—marking a 6.12% increase from the low recorded in the past 24 hours. This uptick comes as investors remain optimistic about Ripple’s future and SBI’s strategic role within the ecosystem.
