By Shelly Melancon (Switzerland)
Leading Japanese financial services firm, SBI has suggested in a report that the Ripple Ledger (XRPL) could be used for non-fungible tokens (NFTs) and the tokenization of a variety of assets. SBI had partnered with Ripple Labs earlier in a joint venture, following its recent move to acquire major stakes in crypto and blockchain firms. The Japanese giant highlighted the benefits XRPL would bring to the NFT space.
SBI has been deliberate in its efforts to utilize the cryptocurrency space to its advantage. It established a crypto exchange, VC Trade in 2018, making it one of the leading traditional financial institutions to venture into crypto assets and services. VC Trade exchange is likewise the first crypto firm to be backed by a traditional institution. Late 2020, the financial giant had unveiled a crypto investment offering where its clients were asked to invest Bitcoin ranging from 0.1 to 5 BTC in return for a 1% annual interest.
SBI’s Report Highlights Benefits of XRP Ledger
In its new report, the Japanese conglomerate touted the XRP Ledger as a suitable framework for NFTs and assets tokenization. The report stated that the advantages XRPL presented to both sectors are extremely low transaction fees and fast confirmation time; less environmental hazards as the crypto asset does not depend on mining. Generally, the firm’s report asserted that to ensure sustainability, scalability and accessibility for NFTs in coming years, the XRP blockchain would play a pivotal role in this regard. In addition, SBI reiterated the value of the Ledger in tokenizing physical assets.
While highlighting the importance of the blockchain for the aforementioned purposes, the firm also commented on the record-breaking $69.3 million NFT sale of Beeple’s Everydays: First 5000 days, saying a blockchain-based certificate would serve to enable the originality of artworks, thereby making them resistant to manipulations. In light of asset tokenization, SBI’s report referenced the prediction of the World Economic Forum (WEF) that 10% of the world’s GDP would be tokenized in the next 6 years. In view of this, SBI reasoned that it was necessary to have interoperable functionality across various blockchains and extant internet and financial frameworks to bring to reality WEF’s predictions.
SBI-Ripple Labs Joint Venture Indicates Former’s Pro-Crypto Stance
Most traditional financial institutions, especially in the UK, have been reluctant to join the cryptocurrency wave. However, despite being a traditional bank, SBI has shown its interest in crypto in a series of investment products and merger acquisitions (MA). Ripple’s partnership with the leading Japanese bank birthed a first-ever blockchain-based international remittance service in Cambodia.
In March, SBI had offered to reward its shareholders with the XRP asset. The rewards were based on a gesture of appreciation to the firm’s shareholders for their support. Details of the announcement revealed that those with 100 shares or more would receive XRP assets to the tune of 2,500 Japanese Yen ($22.50). Rewards also came in the form of health products via the firm’s health and foods subsidiary, SBI Alapromo.
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