Financial giant SBI Group is willing to offer new services and products. Interestingly, the Japanese financial services firm enabled XRP lending its cryptocurrency-related subsidiary called SBI VC Trade. There are many cryptocurrencies. This cryptocurrency is quite popular around the world.
Let’s have a look at the statement released by SBI VC Trade. Interestingly, SBI VC Trade Lending users have the opportunity to earn interest by depositing their XRP holdings between 1,000 and 100,000 XRP, with the lending period lasting up to 84 days.
It is worth noting that, VC Trade Lending is a service that allows customers to rent out their crypto assets to the company. In return, they receive interest rewards according to the quantity and duration of the crypto assets. People should take into account that, the annual interest rate for lending XRP amounts to 0.1% with taxes included, according to the announcement.
Interestingly, the XRP interest rate is significantly lower than the rate for lending Bitcoin to SBI. As a reminder, the company launched its cryptocurrency lending platform last year more precisely in November 2020. The platform allows users to earn 1% interest from depositing Bitcoin.
Cryptocurrency and legal aspects
It is worth mentioning that, the new listing on SBI’s lending platform comes amid ongoing legal issues for the altcoin. As a reminder, Ripple which is the company behind several products based on XRP is now facing a federal lawsuit in the U.S. for alleged violations of U.S. securities laws by selling unregistered securities. This lawsuit created problems for Ripple and it will take time to restore its reputation.
Importantly, SBI emerged as a major Ripple partner. The company introduced multiple products based on XRP. This is not the end of the story as according to SBI’s CEO Yoshitaka Kitao, Japan is the most likely country for Ripple to move to if the firm is forced to leave the U.S. Interestingly, SBI Holdings is a Ripple investor. Moreover, Yoshitaka Kitao sits on the firm’s board of directors.
XRP and cryptocurrencies, in general, have the potential to revolutionize the world. However, it won’t be easy to reach this goal as can be seen from the example of this cryptocurrency. Nevertheless, cryptocurrency-related companies should cooperate with authorities to cope with various challenges. Moreover, it is important to work with regulators as this way it will be easier to avoid additional problems. Furthermore, authorities should pay more attention to cryptocurrency-related projects in the future.