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SBI Holdings is confident that XRP will be a successful and widely used digital asset for international transfers and billing, and potentially a leader in the virtual currency sector.
In its FY 2018 report published last Friday, SBI gave a financial overview of its virtual currency ecosystem, which includes proof-of-work (PoW) mining activities, and an initiative with Ripple to develop a global blockchain. based transfer platform.
In its overall assessment, SBI said that “digital asset-related companies established in 2016 performed consistently”. The bank’s holdings and holdings generated total gross income of JPY 360 million (approximately $ 3.2 million) in FY2018.
But the report went a step further when it came to Ripple. SBI argued that stronger collaboration between Ripple Labs and the Blockchain-for-Industry platform R3, another SBI partner, has “high potential to become a global standard for financial operations such as international money transfers and trade finance.”
It’s not clear what SBI meant by “global standard” or whether they had a specific Ripple product in mind. However, the FY report suggests that interoperability would enable both Ripple and R3, which stood on opposing sides in a three-year lawsuit until last September, to develop comprehensive services for the financial sector.
Business and banking partnerships are a key element of Ripple’s strategy. The director of business development told Crypto Briefing last week that Ripple’s collaboration with other companies like SBI or R3 gives it a strong advantage over competitors like the Stellar (XLM) network.
About SBI Holdings.
XRP was the first digital asset to become compatible with R3’s Corda platform, a network that connects banks to enable seamless transfer of data and values. Corda enables banks to process international transfers without going through central banks or SWIFT.
The SBI-Ripple relationship
The Japanese bank has long supported XRP. In 2016, it started a new joint venture with Ripple Labs, known as SBI Ripple Asia, to promote the adoption of XRP in the region.
SBI has outlined plans to increase the adoption of Ripple products by financial institutions. This includes the expansion of Money Tap, a consumer-facing payment application that uses the xCurrent tracking service for real-time bank-to-bank transfers. Money Tap was launched by SBI Ripple Asia in the fourth quarter of 2018.
The FY report highlights that Ripple Labs will consider making additional investments in MoneyTap to increase technical development and broaden its settlement offering. Although not specifically mentioned, this could include the introduction of xRapid, an institutional payments network that uses the cryptocurrency XRP.
About SBI Holdings
SBI Holdings is also considering a security token offering to launch a new digital asset management fund. Still on the drawing board, the STO is currently waiting for further guidelines from the Japanese regulatory authorities, which are expected sometime this summer.
The proposed fund could invest in virtual currencies, the FY report says, and the report identifies two currencies of particular interest. The first proposed investment is Bitcoin, the leading digital asset. The second is – you guessed it – XRP.
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