SBI Holdings’ CEO, Yoshitaka Kitao, has made it clear that the Japanese financial powerhouse does not possess $10 billion in $XRP tokens. However, the company holds a substantial equity interest in Ripple Labs.
Ownership Structure
The conversation ignited when a Twitter user, @strivex_, commended SBI’s recent foray into Singapore and remarked: “SBI, a key partner of Ripple and holder of $10 billion in #$XRP, is expanding its footprint in Asia…” In response, Kitao quoted this post to rectify the financial inaccuracies.
If SBI were to hold $10 billion worth of $XRP, it would subject the firm to significant fluctuations based on the token’s daily price movements. Conversely, owning 9% of Ripple Labs signifies that SBI commands a considerable share of this private company’s equity.
A Valuable Stake?
In a subsequent tweet, Kitao elaborated on why he views this stake as an underappreciated asset that isn’t fully represented in SBI’s current book valuation.
“Considering Ripple Lab’s overall valuation—which certainly encompasses its expansive ecosystem—this figure would be monumental. SBI possesses over 9% of such value,” he stated.
Recent analyses have estimated Ripple Labs’ valuation at more than $50 billion. If this holds true, then SBI’s 9% ownership stake could equate to around $4.5 billion on paper today.
Kitao seems convinced that Ripple’s ecosystem is valued much higher than what current private market assessments indicate.
SBI Holdings has been an unwavering supporter of Ripple since 2016 with their partnership intricately woven into both organizations’ operations.
The Coinhako Deal
This past Friday saw SBI announce its acquisition of a majority interest in Coinhako—a regulated cryptocurrency exchange located in Singapore. Coinhako possesses a Major Payment Institution license granted by the Monetary Authority of Singapore (MAS).
This move enables SBI to create an effective “corridor” for digital assets connecting Japan with Southeast Asia.