The world of cryptocurrency has seen numerous players rise to prominence, and few are as noteworthy as SBI Holdings. Recently, CEO Yoshitaka Kitao addressed claims regarding SBI’s reported investment in XRP. He clarified the focus should instead be on SBI’s significant equity stake in Ripple Labs, a detail that sheds light on the true value embedded within the company’s strategies.
The discussion ignited when an X account referred to SBI as “a significant partner of Ripple” and claimed they held $10 billion in XRP. This conversation gained momentum as SBI expanded its influence in Asia, particularly through its acquisition of Coinhako, a regulated cryptocurrency exchange based in Singapore. Kitao responded, correcting this narrative and underscoring SBI’s actual stake in Ripple.
“We are not talking about $10 billion in XRP but rather approximately 9% ownership of Ripple Labs. Our hidden asset is potentially much larger,” Kitao stated in a post earlier this month.
Revisiting Ripple’s Valuation Dynamics
Kitao’s remarks shifted the spotlight from the amounts held in XRP to the more significant equity position SBI has in Ripple Labs. This pivot highlights the fact that the true value of such an investment is tied not just to the current market price of XRP, but to the overall valuation of Ripple as a burgeoning enterprise.
In another insightful post that day, Kitao elaborated on this connection, emphasizing Ripple’s expansive ecosystem. “Ripple Labs’ overall valuation, encompassing its vast ecosystem, is quite substantial. SBI holds over 9% of that value,” he noted, indicating a broader potential for growth.
A community member known as “BankXRP” further amplified these implications by citing recent estimates placing Ripple’s valuation at more than $50 billion, suggesting that such a valuation could mean SBI’s 9% stake would equate to over $4.5 billion. This indicates significant potential for future growth based on Kitao’s hints.
While Kitao did not specify a monetary value for SBI’s stake, the 9% assertion provides a straightforward benchmark for valuation. To exceed the $10 billion mark for SBI’s ownership, Ripple’s market valuation would have to surpass approximately $111 billion. Without this massive valuation, the math does not support such a claim.
Furthermore, SBI’s estimated 9% stake appears to stem from a strategic alignment rather than a one-time transaction. According to SBI’s investor materials, the relationship with Ripple was formalized back in September 2012, with investments solidifying during March 2016, leading to a joint venture known as SBI Ripple Asia in May 2016 (SBI owning 60% and Ripple 40%).
Moreover, SBI’s role as an investor in Ripple’s $200 million Series C funding round announced in late 2019 emphasizes their ongoing commitment to the company and reflects an enduring equity interest as Ripple secured further capital.
As of now, XRP stands at a trading price of $1.46, captivating the interest of investors and analysts alike.
