SBI Holdings has reaffirmed its exposure to Ripple, telling investors that its Ripple shareholding carries an estimated value of $41.2 billion despite weaker XRP prices and sluggish crypto market conditions.
Summary
- SBI cited a ¥6.6 trillion valuation for its Ripple shareholding during its first-quarter earnings presentation.
- SBI’s crypto asset business posted a ¥1.4 billion pretax loss, although market maker B2C2 remained profitable.
- First-quarter net profit rose 149.9% year over year to ¥148.1 billion.
- SBI is also expanding through the Canton Network and a ¥3 billion crypto fund.
SBI maintains its Ripple position despite XRP weakness
SBI discussed its Ripple investment while reporting results for the first quarter, during which the Japanese financial group described its cryptocurrency business as sluggish.
Management linked the muted operating environment partly to uncertainty over whether the U.S. Senate will pass the CLARITY Act, a proposed market structure bill intended to define oversight responsibilities for digital assets.
“The cryptocurrency business remains sluggish, as if waiting to determine whether the CLARITY Act will be enacted,” SBI said in its earnings presentation.
The company added that its “Ripple shareholding alone is worth ¥6.6 trillion,” equivalent to about $41.2 billion at current exchange rates. The figure represents SBI’s stated valuation and should not be confused with cash realized from selling the investment.
SBI has maintained a relationship with Ripple for roughly a decade. The companies formed SBI Ripple Asia in 2016 to promote blockchain-based payments and settlement services across Japan and other Asian markets.
XRP’s recent decline has weakened sentiment around Ripple-linked assets, but SBI’s comments indicate that the group continues to treat the relationship as a long-term strategic investment rather than a short-term position tied solely to the token’s price.
CLARITY Act remains a key US catalyst
SBI’s comments placed part of the focus on Washington, where lawmakers have continued negotiations over the CLARITY Act before the Senate’s August recess.
Sen. Cynthia Lummis said Senate Majority Leader John Thune had retained space for the legislation on the chamber’s agenda, although nominations, government funding and a sanctions vote were competing for floor time.
“I believe he does intend to go through with it,” Lummis said, adding that a vote could occur within days.
Passage is not guaranteed. Senate leaders would need enough support to overcome procedural hurdles, while any amended version could also require further action in the House.
For Ripple and other U.S.-linked crypto businesses, the bill could provide clearer boundaries between the Securities and Exchange Commission and Commodity Futures Trading Commission. SBI’s remarks suggest the Japanese group views progress on U.S. regulation as relevant to both market activity and Ripple’s longer-term prospects.
SBI reports record first-quarter earnings
Weakness in SBI’s digital asset division did not prevent the broader group from recording its strongest first quarter.
Revenue reached ¥571 billion, while profit before tax climbed to ¥225.8 billion. Net profit attributable to shareholders rose 149.9% from a year earlier to ¥148.1 billion.
SBI reported a 29% return on equity over the past year, exceeding its medium-term target of 15%. However, the crypto asset segment recorded a ¥1.4 billion pretax loss. SBI said institutional crypto market maker B2C2 remained profitable during the period.
The group is also seeking to expand its domestic digital asset business through crypto lending, stablecoin-related services and its planned acquisition of Bitbank. SBI expects the deal to help increase its crypto customer base to about three million accounts and lift assets under custody to approximately ¥870 billion.
SBI expands beyond Ripple and the XRP Ledger
SBI’s blockchain strategy is no longer limited to Ripple. Earlier this week, the group restructured a wholly owned subsidiary to focus on the Canton Network, an institutional blockchain designed for regulated financial markets.
SBI Security Solutions was renamed SBI Digital Practice Co. Ltd. The company will develop financial infrastructure and applications for institutions, including regulatory compliance tools and systems supporting cross-border and multi-currency transactions.
SBI Financial Services has also partnered with Japanese game developer Gumi on SBI Crypto Fund I. The private fund began operating on Aug. 1 with roughly ¥3 billion in committed capital and will invest mainly in Bitcoin and major listed altcoins. Daiwa Securities Group and other investors have backed the vehicle, although individual commitments and planned allocations were not disclosed.
Together, the Ripple holding, Canton Network unit and new investment fund show SBI is broadening its digital asset exposure even as XRP and its crypto division face near-term pressure.
