Ripple Backed SBI Holdings CEO Breaks Silence on $10 Billion XRP Holdings Report

SBI Holdings CEO Yoshitaka Kitao has clarified recent reports that suggested the Japanese financial giant holds $10 billion worth of XRP tokens. In a direct response to the inaccurate claims, Kitao confirmed that SBI’s position is not in XRP tokens but in Ripple Labs, the company behind the XRP ledger. SBI owns a significant 9% equity stake in Ripple Labs, which allows the firm to benefit from the company’s growth, rather than directly holding XRP itself.

SBI Holdings Investment in Ripple Labs

SBI CEO Kitao took to X to correct the financial misunderstanding after a user, @strivex_, claimed that SBI was a major XRP holder. The user had referred to SBI’s recent expansion into Singapore and suggested that SBI held $10 billion worth of XRP tokens. 

In a quoted response, Kitao emphasized that holding $10 billion in XRP would expose SBI to significant volatility, whereas owning equity in Ripple Labs gives the company a solid stake in Ripple’s overall ecosystem without the risks associated with holding the token.

SBI’s stake in Ripple Labs means that the firm has a significant portion of the company’s equity, as Ripple continues to develop its blockchain technology and grow its network of institutional partnerships. This is a notable distinction, as it aligns SBI with Ripple’s long-term business prospects rather than the daily price fluctuations of XRP itself.

Ripple’s Ecosystem and Valuation

Ripple’s ecosystem is seen as a key enabler of cross-border payments and decentralized finance (DeFi). Recent private market reports have suggested that Ripple’s valuation could exceed $50 billion, given the company’s growth potential and the increasing institutional adoption of XRP and its ledger. 

According to these valuations, SBI’s 9% stake in Ripple Labs would be worth approximately $4.5 billion today.

SBI Holdings CEO Yoshitaka Kitao also referred to Ripple’s overall ecosystem as a ”hidden asset” that is not fully reflected in the current book value of SBI. He suggested that the full value of Ripple’s ecosystem, which includes its extensive partnerships and technology, would significantly boost Ripple’s valuation in the future. The growth of Ripple as a fintech powerhouse positions SBI to benefit from any appreciation in Ripple’s overall value.

SBI’s Strategic Role in Ripple’s Success

SBI has been a staunch ally of Ripple since 2016, and this partnership continues to evolve as both companies push forward in the cryptocurrency and blockchain sectors. Beyond holding an equity stake, SBI has been actively involved in advancing Ripple’s objectives globally. 

Recently, SBI announced its acquisition of a majority stake in Coinhako, a regulated cryptocurrency exchange based in Singapore. This acquisition is part of SBI’s broader strategy to create a digital asset corridor between Japan and Southeast Asia. SBI’s deepening commitment to Ripple Labs is seen as part of the company’s strategy to foster institutional adoption of XRP. 

The ongoing partnership with Ripple provides SBI with a front-row seat to the development of new use cases for XRP, including cross-border payments and real-time settlement solutions. Moreover, as the Coinpaper earlier reported, as part of its continued support for XRP, SBI has also participated in Ripple’s $1 billion treasury initiative through a partnership with Evernorth Holdings, a company that is focused on driving XRP’s institutional adoption. 

Amid these clarifications, the Ripple token has seen a brief recovery after the recent crypto market crash. At press time, the XRP price was trading at $1.56, a 6.12% surge from the 24-hour low.