Unveiling SBI’s Strategic Stake in Ripple Labs
In a recent discourse, Yoshitaka Kitao, CEO of SBI Holdings, addressed a widely circulated claim concerning the company’s alleged $10 billion investment in XRP. Kitao clarified that SBI Holdings’ significant financial engagement lies in its equity stake in Ripple Labs, a detail that the market may not fully appreciate. This revelation emerged following a social media post that described SBI as a “major partner of Ripple” and claimed it held a substantial amount of XRP. This assertion was linked to SBI’s expanding influence in Asia, notably through its acquisition of Coinhako, a regulated cryptocurrency platform in Singapore. Kitao promptly refuted these claims, steering attention towards SBI’s equity holdings in Ripple rather than a specific XRP figure.
SBI CEO Highlights the True Value of Ripple Ownership
Yoshitaka Kitao’s comments effectively shifted the focus from SBI’s token holdings to its equity position in Ripple Labs. Instead of verifying the $10 billion XRP figure, he underscored the significance of SBI’s stake in Ripple. This perspective is crucial, as equity value is a reflection of Ripple’s overall market valuation rather than the current price of XRP. Kitao elaborated on his viewpoint, connecting it to Ripple’s expansive ecosystem, suggesting that the company’s total valuation, including its ecosystem, could be substantial. He emphasized that SBI holds over 9% of this considerable valuation.
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Community contributor “BankXRP” further amplified the implications by referencing recent evaluations suggesting Ripple’s valuation exceeds $50 billion. This estimation implies that SBI’s 9% stake could be valued at over $4.5 billion, highlighting potential future gains as hinted by the CEO.
Understanding the Valuation Metrics
While Kitao refrained from specifying an exact dollar value for SBI’s stake, the noted 9% ownership provides a clear benchmark for valuation. For SBI’s stake to be worth more than $10 billion, Ripple’s total valuation would need to surpass approximately $111 billion. To contextualize, with a $90 billion valuation, a 9% stake would be valued at around $8.1 billion; at $50 billion, it would be about $4.5 billion. Therefore, reaching a valuation exceeding $10 billion requires Ripple to achieve a valuation in the triple-digit billions.
The Strategic Partnership Between SBI and Ripple
SBI’s approximately 9% ownership is the result of a long-term strategic partnership rather than a singular transaction. According to investor materials, the relationship between SBI and Ripple was “established” in September 2012. SBI later invested in Ripple in March 2016, further cementing their collaboration through the SBI Ripple Asia joint venture, where SBI holds a 60% stake and Ripple 40%, established in May 2016. Furthermore, SBI participated in Ripple’s $200 million Series C funding round announced in December 2019, demonstrating sustained equity interest as Ripple continues to raise capital.
At the time of writing, XRP was trading at $1.46, maintaining a position above the 200-week EMA, as illustrated on the XRPUSDT chart on TradingView.com.
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