Japanese Financial Giant Launches XRP Lending Service Amid Ripple Lawsuit
SBI Japan adds XRP to its cryptocurrency lending service.
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SBI VC Trade, a subsidiary of the Japanese financial firm SBI Holdings, announced that it would begin accepting XRP for its cryptocurrency lending service.
SBI Launches 0.1% Interest on XRP
Under the VC Trade Lending service, customers can deposit their XRP and earn an annual interest of 0.1%.
The firm said the minimum and lending quantity is 1,000 (~$390) and 100,000 XRP (~$39,000).
SBI Holdings first launched its lending service in November 2020 with Bitcoin and indicated it would add XRP and ETH later.
Given a small interest rate of 0.1%, it remains unclear if SBI’s lending service would appeal to Japanese crypto investors. A myriad of other crypto-native services offers much higher rates for the number five cryptocurrency. Still, the service could be of interest to more risk-averse investors.
SBI Holdings is one of Japan’s largest financial services companies, making it a relatively trustworthy choice for cryptocurrency lending.
The Japanese Premium
Issued by blockchain payments firm Ripple, XRP is one of the most popular cryptocurrencies in Japan.
A testament to the token’s popularity is a 2020 survey, which found that Japanese citizens prefer the asset over Ethereum. Local regulators have also clarified that they do not consider XRP as a security.
In comparison, the asset is currently under legal scrutiny from American authorities for being an unregistered security.
Disclosure: The author did not hold crypto mentioned in this article at the time of press.