BTC Wires

Ripple to Gain From Russian Banks’ Investment in SBI’s Subsidiary

SBI Holdings has reportedly signed a deal with two Russian banks to invest in its subsidiary, the SBS Bank.

The Tokyo-based financial services company, SBI Holdings has inked an agreement with the Russian-Japanese Investment Fund and Russian Direct Investment Fund for investment in its subsidiary SBS Bank.

The news of this deal is critical to the crypto community as Ripple is a partner of SBI Holdings. The agreement, which was signed between country head’s Shinzo Abe and Vladimir Putin during a meeting, is set to expand Ripple’s reach in the Asian markets.

The Remittance network and currency exchange, Ripple had entered into a partnership with SBI Holdings last year in January with a view to meet the demand for Ripple’s payment solution in the Asian markets.

Subsequently, in June 2018, SBI Holdings’s CEO and President, Yoshitaka Kitao launched the bank’s digital currency platform. At the time of the launch, Ripple (XRP) was the only cryptocurrency offered on the platform. SBI had said that gradually the platform will start offering Bitcoin Cash and Bitcoin.

The platform offers digital currency trading and exchange service called VCTRADE. At the time of the launch, the SBI President elaborated on why the bank believes in XRP. He said,

“Not only does it have a clear use case, but XRP is also faster, cheaper and more scalable than any other digital asset,” Mr. Kitao said. “I strongly believe it will become the global standard in digital currencies.”

The joint venture by Japan and Russia endeavours to foster the adoption of emerging technologies drive industrial growth, as well as aid in the development of smart cities.

The partnership will drive projects worth as much as 1.4 trillion rubles across the Russian Federation region.

SBI Holding is one of the top financial services companies in the world. It operates in the realms of biotech investment, asset management, and venture capital. SBI and Ripple will both have a major stake in this partnership.