SBI Holdings, a Japanese financial group, has dismissed rumors about its ownership of billions of dollars in XRP. The company made the announcement after online posts indicated the company owned a large quantity of the cryptocurrency.
The company’s officials clarified the rumors by stating the company’s ownership of the asset is due to its equity stake in Ripple Labs.
SBI’s CEO, Yoshitaka Kitao, clarified the circulating rumor of the company owning $10 billion in XRP. The CEO stated the company does not own the said quantity of XRP. The company owns the asset due to its equity stake in the company, Ripple Labs.
Kitao Responds to False Reports of SBI Holding $10B in XRP
The rumor started after an X user, identified as Ledger Man, commended SBI on its business expansion in Singapore after acquiring Coinhako. The user further added that the company owns $10 billion in XRP, and the news spread rapidly on all social media platforms.
SBI’s CEO, Yoshitaka Kitao, reacted to the rumor as it began circulating. The rumor that the firm owns $10 billion in XRP is false. The company owns 9% of the equity in Ripple Labs, not billions in XRP. He also clarified that the equity stake is the firm’s main exposure to the asset.
Ripple recently completed its funding round, and the company added $500 million to its capital. The company’s valuation is now close to $50 billion. The company’s 9% equity stake in the company is about $4 billion, and the figure represents the company’s actual exposure.
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Kitao said that the value of the investment in the long term may increase. He mentioned this in terms of Ripple’s overall roadmap. He said nothing about any upcoming targets for valuation. He emphasized that the company’s interest is in Ripple’s equity and not in XRP.
SBI Ripple Asia Advances Research on XRP Ledger Yield Products
The SBI and Ripple partnership has been ongoing for years. They have been supporting different initiatives that seek to increase XRP adoption in Asian countries.
They have a joint venture called SBI Ripple Asia that handles different projects in the region. These projects are centered around payments and enterprise solutions that use blockchain technology.
In December, SBI Ripple Asia signed a memorandum of understanding with Doppler Finance. This memorandum is centered around different research activities that focus on yield products that use the XRP Ledger.
There is also tokenization in real-world assets. This is in response to the demand for structured returns that use blockchain technology in institutions.
There have been more developments in the XRP Ledger. A developer at Ripple proposed that they explore different staking features that will be used in upcoming reward systems.
Also Read: SBI Moves to Take Over Singapore Crypto Exchange Coinhako