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SBI stands by XRP during SEC trial

Photo of: Joseph Stone
by Joseph Stone

While many exchanges are playing it safe with Ripple’s XRP, financial giant SBI remains confident. Through its subsidiary SBI VC Trade, the company completes its range of crypto loans by integrating XRP.

A few days earlier, the price of XRP was skyrocketing. A sign of renewed confidence? Absolutely not. The token was simply the subject of a “pump & dump” campaign. Its price was rising before falling sharply.

However, not all indicators are red for Ripple. The company can always count on the support of a partner of choice, the Japanese financial giant SBI. SBI operates various services through subsidiaries in the field of crypto.

In particular, the company offers crypto loans via SBI VC Trade. And it completes its range of services by hosting XRP. SBI VC Trade Lending customers can now earn interest on their token deposits.

“VC Trade Lending is a service that allows customers to lease their crypto assets to the company and receive reward interest based on the quantity and duration of the crypto assets,” says the bank.

Between 1,000 and 100,000 XRPs are thus eligible for a deposit for a period of up to 84 days, according to SBI’s information. The annual interest rate for the XRP loan is 0.1% including taxes.

The rate is low. It depends on the type of cryptocurrencies. For Bitcoin, the most popular cryptocurrency, the annual rate is, for example, 1%. But it is probably the most requested crypto asset, along with Ether.

However, these SBI products are limited to a Japanese customer base. XRP remains popular there, even though many customers gave up their tokens following the SEC complaint. The procedure is worth a drop in the value of cryptocurrencies and thus a loss of capital for its holders.

“SBI Holdings is and will continue to be a strong partner of Ripple,” SBI spokespersons said. SBI’s CEO, Yoshikata Kitao, is a member of the Ripple Labs Board of Directors.

Moreover, the firm’s business would remain solid, particularly in Asia. This is what its boss said at the end of January. In particular, Brad Garlinghouse announced the signing of numerous contracts.

“We’ve handled millions of RippleNet [transactions], increased [cash on demand] 12-fold [year-over-year] and signed 15 new clients after the SEC complaint,” Garlinghouse said in a defiant tone.