Ripple News: Japanese Megabank Acquires Ripple Partner SBI HoldingsJune 22, 2022 1:58 pm
John Deaton just shared a new update that could likely affect the valuation Ripple and further increase mainstream adoption of the blockchain project.
Deaton shares that Japanese bank Sumitomo Mitsui Financial Group just acquired a major stake in the company SBI Holdings which is known to be a major owner in XRP.
SBI Holdings and Ripple have a well rounded partnership where even the president of SBI Holdings had served on the Ripple board for two years.
The acquisition of a large stake of SBI Holdings by the Japanese bank was estimated to be at around 590 million dollars and could likely mean major changes in the company will start to utilize XRP in the future.
First of all, it is worth specifying that the intention of SMFG, whose assets are estimated at 2.2 trillion dollars, to purchase a 10% share in the business of SBI Holdings is aimed at strengthening its position in the securities services market.
The deal, if it is concluded, is a continuation of the 15-year history of cooperation between the two eminent Japanese financial corporations. It is also worth noting that two conglomerates have even had a joint investment in one of Ripple’s products, Ripplenet Moneytap.
Perhaps the deepening relationship between the two Japanese financial giants is the ground preparation for the more widespread adoption and use of blockchain technology and cryptocurrencies in the life of Japan.
In this case, the deal looks very logical, given SBI’s position in Ripple (XRP), which can be considered the best in the development and implementation of corporate crypto solutions.
The deal that was achieved will also mean new benefits for the bank as well as this would give the bank access to new customers and will also help strengthen its online business.
On the SBI side, they will also benefit as they will now have access to Sumitomo Mitsui’s tremendous database of customers which will enable adoption of any of SBI’s crypto initiatives.
Given SBI Holding’s close ties with Ripple and XRP, this will likely help create new use cases on how the bank could use XRP thus giving it long term value.
The deal is expected to finalize soon and investors could likely see a short term reaction in the market to this new announcement.
Sources say the megabank plans to acquire about a 10-percent stake in SBI.
SBI will reportedly issue new shares and allocate them to Sumitomo Mitsui.
A stake in SBI would give Sumitomo Mitsui access to new young customers as well as strengthen its online securities business.
For SBI, a deal could expand its online banking business thanks to the huge customer base of Sumitomo Mitsui’s bank and credit card units.
This is not the first tie-up between the two companies. Sumitomo Mitsui already has a 20-percent stake in an SBI subsidiary that offers stock transactions through smartphones.
The financial giants strengthened their ties earlier this month by jointly establishing a private securities exchange.
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.