The financial service provider would soon form a joint venture with other international bodies to expand services globally. The Japanese firm is a known Ripple partner and has helped the crypto firm get publicity for its digital asset known as XRPs. The digital currency is widely used in the region for settling cross-border payments and other essential financial services.
Although Ripple is facing some challenges presently, the partner has shown support in various ways to help the asset appreciate even with the legal battles. The firm recently added XRPs to its crypto loan services, allowing clients to get interests on their holdings after a particular period. Now, SBI holdings is creating new ways to give people more crypto-related services, and it plans to collaborate with international firms to get that done.
SBI’s strategy would focus on international partnership
The firm has been making expansion plans since 2020 when it purchased a Japan-based exchange called TaoTao. Recently, the firm’s CEO, Yoshitaka Kitao, shared that its strategy wouldn’t be based on taking minority stakes in numerous companies but would collaborate with top crypto firms globally to expand.
The cryptocurrency industry is bigger than what it used to be, meaning that firms that offer the services would record higher profits as the assets surge at different points. SBI shared that it made outstanding profits in 2020, especially since Bitcoin broke its 2017 ATH and hit more vital price marks.
SBI holdings said its pretax earning from cryptos alone was around $66 million, which is about 80% higher than its recorded pretax profits the previous year. The company’s loyalty to Ripple got attention from the media, as it showed support even when the legal battle started for the fintech firm. The fintech company’s legal battle is yet to be over, but XRP is gradually increasing after weeks of continuous decline.
Kitao says XRPs are not securities
SBI holding’s CEO also opined that XRPs are not securities, which is why the SEC sued the firm. The US Securities and Exchange Commission accused Ripple executives of selling unregistered XRP tokens. The watchdog said the firm did not register the digital asset, which is against the federal legislation on securities. Ripple fired back and said that the tokens were not securities and offered only cross-border payments for interested users.
The digital asset is presently one of the world’s largest cryptocurrencies. The suit caused money loss for many holders as prominent exchanges delisted the assets due to the lawsuit. Exchanges don’t want to risk being parties to the suit and had removed the digital asset immediately.
Even with the removal from the trading platforms, the crypto continues to grow at an impressive speed, which surprises many, considering the problems the firm is facing.
The firm’s CEO spoke extensively on the new plans and said the firm’s M&A strategy would not focus on taking minority stakes in different firms. He added that institutional buyers now demand cryptos, which is one reason behind its plans to expand its services.