Japanese financial services giant SBI Holdings considers using XRP to pay dividends

Following a similar approach by its Morningstar subsidiary, Japanese financial services giant SBI Holdings is considering paying dividends to shareholders in the form of XRP tokens.

On August 29, Morningstar Japan, a subsidiary of giant financial services group SBI Holdings, announced that they would pay dividends to shareholders in the form of XRP tokens. According to the statement, the Japanese company will provide 30 XRP to its shareholders if they hold a minimum of 100 shares on September 30.

According to the December 5 report, after Morningstar began distributing dividends to its shareholders in XRP earlier this year, SBI CEO Yoshitaka Kitao revealed that the company is currently considering to follow the same practice.

SBI will launch the program in the fiscal year ending in March 2020. Kitao further stated that it was an option to participate.

Morningstar’s dividend from XRP has grown SBI’s cryptocurrency business

Morningstar Japan, an independent financial investment research firm, first revealed its plan to combine dividends based on XRP in August 2019. Shareholders are eligible to receive the third-largest cryptocurrency by its market capitalization will have to open an account with crypto exchange SBI VC Trade.

At press time, 30 XRP is worth around $ 7.50, with one XRP currently trading at $ 0.25.

Kitao said the launch of the XRP dividend on Morningstar led to the number of daily applications for SBI’s cryptocurrency exchange, SBI VC Trade.

SBI and Ripple have been significant partners so far

The two companies have worked closely in the past, with SBI Holdings being Ripple’s active partner through the SBI Ripple Asia joint venture, which was established to promote the use of XRP in Asian financial markets in 2016.

In a financial report released in late October 2019, SBI emphasized the growing importance of Ripple technology, in the remittance division of SBI Remit as well as the development of Ripple-based remittances.

Sales of SBI Securities increased by 19.2% in 2019. This was largely due to the inclusion of the company’s crypto investment wing, which turned the $ 7.1 million loss into a $ 30 million profit in the year.

Japanese financial services giant SBI Holdings released its new financial statements on October 30. The report analyzed the results for the six months ending on September 30, 2019 and witnessed them. The massive growth of SBI’s crypto venture arm in 2019 amid the general decline in SBI’s revenue.

In early April, Kitao was appointed the executive director of Ripple Labs, where he will further promote the use of blockchain and digital assets at financial institutions in Japan and Asia, and try to develop financial services with high customer benefits.

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