SBI Holdings, a prominent player in Japan’s financial landscape, is set to introduce its inaugural blockchain-based bond aimed at individual investors. This significant offering, valued at 10 billion yen (approximately $64.5 million), merges conventional fixed-income attributes with innovative blockchain settlement and cryptocurrency incentives. Dubbed the SBI START Bonds, these securities are managed entirely on-chain through the “ibet for Fin” platform, developed by BOOSTRY, a specialized company focused on enterprise blockchain solutions for security token issuance.
These bonds, which have a maturity of three years, are expected to deliver an annual interest rate ranging from 1.85% to 2.45%, with interest payments disbursed semiannually. A distinctive feature of the SBI START Bonds is the integration of XRP tokens as part of the investment rewards. SBI has announced that retail investors and companies investing more than 100,000 yen (around $650) who maintain an account with SBI VC Trade will be eligible to receive XRP rewards in relation to their subscription amount. Specifically, for every 100,000 yen invested, investors will receive an additional 200 yen worth of XRP. These rewards are scheduled to be distributed at issuance and alongside each interest payment date, extending through 2029.
The bonds are anticipated to initiate secondary trading on March 25, facilitated by the Osaka Digital Exchange’s proprietary trading system, known as “START.” SBI Holdings’ longstanding relationship with cryptocurrency is further emphasized by its partnership with Ripple, established back in 2016. This partnership has positioned the company as a strong advocate for XRP, with a subsidiary even distributing XRP directly to shareholders and promoting XRP-powered remittances between Japan and the Philippines.
Yoshitaka Kitao, Chairman and CEO of SBI Holdings, has revealed that the company holds approximately 9% of Ripple Labs. Under Kitao’s leadership, SBI Holdings has evolved since its launch in 1999 as a subsidiary of SoftBank, eventually becoming an independent entity in 2006. Today, it ranks among the largest financial conglomerates in Japan, generating over $8 billion in annual revenue.
The company first ventured into blockchain through its collaborative efforts with Ripple, leading to the establishment of SBI Ripple Asia. Additionally, SBI Holdings has embraced stablecoin technology, recently forming a partnership with Circle to introduce USDC in Japan and signing a memorandum of understanding with Ripple to distribute its RLUSD stablecoin. This latest bond issuance signifies SBI’s continued commitment to blending innovative financial services with cutting-edge technology.
