Unfazed by economic downturn! Japanese institution SBI launches crypto fund with 50% in XRP, also offers shares as shareholder perks

Japanese financial group and venture capital firm SBI Holdings revealed in its operating status report on the 26th that Japan's first cryptocurrency fund is expected to be launched this summer.

This financial giant, originated from Softbank, seems to be more aggressive in cryptocurrency investment compared to Softbank's conservative approach.

50% of the Fund is in XRP, Only Three Types of Cryptocurrencies Included

In a presentation released by SBI, it is shown that SBI will offer "cryptocurrencies" with lower correlation to traditional assets to individual investors to enhance diversification. The cryptocurrencies will be held in custody by its subsidiary exchange, SBI VC Trade, and investment advice will be provided by its research arm, Morningstar Japan. Based on current data, the fund will consist of 50% in the cryptocurrency XRP from Ripple, a company focused on cross-border payment networks, with the rest split between Bitcoin and Ethereum.

In a briefing, SBI Group Chairman Yoshitaka Kitao stated that this will be a product that all financial institutions can participate in. It is worth noting that Yoshitaka Kitao has been a member of Ripple's board of directors since April 2019.

XRP as Shareholder Gift!?

Aside from stock dividends, companies often provide shareholder gifts. This time, SBI has introduced the option to choose XRP as a gift, aiming to attract new users to its exchange.

Additionally, SBI has shown its ambition for Security Token Offerings (STOs), having obtained recognition from the Japan STO Association this year and forming partnerships for an STO ecosystem with entities in the United States, Germany, and Malaysia.

More Than Just Collaboration with Ripple

The active collaboration between SBI and Ripple is not new. SBI is actively supporting the Japanese government's goal of a cashless society, with its investment in the payment app startup Money Tap, which utilizes Ripple's blockchain network RippleNet.

Money Tap has also received investments from 35 Japanese banks, and SBI is considering allowing Ripple to join the initiative.

Despite the close partnership between SBI and Ripple, those familiar with Ripple know that although many companies have joined its blockchain network for cross-border payment settlements, XRP is not widely used as a medium for cross-border payments. XRP is just one of the options for cross-border payments and is often not the most commonly used option.

As of now, the value of XRP is frequently questioned in the cryptocurrency community, with reports of selling XRP in the market to maintain profitability. However, Ripple remains a favorite in mainstream U.S. media, with regular exposure and even being named in CNBC's "Disruptor 50" list, hailed as the "cryptocurrency solution for transfers," with its founder Chris Larsen also listed in the Forbes billionaire list.

XRP currently maintains the fourth position in market value, with news often focusing on corporate announcements of collaborations or joining its network, but the actual adoption rate of XRP remains a topic of discussion.