Key facts:
The company determined a minimum loan amount of 1,000 XRP and a maximum of 100,000 XRP.
The XRP asset recently declined in value, after Ripple received a lawsuit from the SEC.
SBI VC Trade, a subsidiary of Japanese company SBI Holding, has decided to add XRP to its cryptocurrency loan offering. The company will offer an annual interest – known as a “user fee” – of 0.1% for each agreed XRP loan.
According to its most recent press release, the loan platform will start trading with XRP from this week of February. The loans will be enabled between clients for a period of 84 days, as well as they will only be able to lend a minimum of 1,000 XRP; US $ 400, at the time of writing. The maximum to be lent will be 100,000 XRP, which represents more than 40 thousand US dollars.
It is striking that SBI VC Trade is offering XRP loans for such a low fee (0.1%), while their bitcoin loans launched in November last year have a 1% usage fee. Of course, bitcoin is the most valuable cryptocurrency on the market, just as Ripple (the company behind XRP) has had a rough time in recent months.
The company received a lawsuit from the United States Securities Commission (SEC) for the alleged sale of unregistered securities. As a result, a significant group of exchanges, including Coinbase, Bitstamp and OkCoin, turned their backs on the asset until further notice, fearing retaliation for trading an asset under investigation. This negatively affected the price of XRP, which is currently valued at 0.44 cents.
Japan and SBI Holding recognize XRP as a cryptocurrency
In this sense, it is an unusual move that SBI VC Trade has decided to expand its operations with XRP in mind. It should also be taken into account that both the subsidiary and SBI Holding have had a business relationship with Ripple for a few years. And it is that the digital asset marketing and lending platform has been working with XRP, in terms of purchase and sale, since 2018.
As if that were not enough, the company has defended Ripple against the accusations of the US government, stating that XRP is a cryptocurrency. In this sense, SBI Holding argues that, in Japan, the marketing of this asset is not subject to any financial products law. These accolades to Ripple confirm that the alliance between both companies is solid and has no intention of giving up, for now.