In a recent investor presentation, SBI Holdings unveiled significant developments in its digital asset strategy, focusing on cryptocurrency investments, blockchain integration, and expanded partnerships. While many initiatives had been previously announced, several new details emerged, highlighting SBI’s growing influence in the blockchain ecosystem.
New Crypto Asset Fund with Heavy XRP Focus
One of the standout announcements was the introduction of a new cryptocurrency fund aimed at individual investors in Japan. According to the presentation materials, the fund’s portfolio is allocated as follows: 50% to XRP, approximately 30% to Bitcoin, and 20% to Ethereum.
Multiple SBI Group subsidiaries are expected to participate in the fund’s management and distribution. SBI Alternative Investments, SBI Securities, and SBI Moneyplaza are named as key players, while SBI VC Trade, the group’s crypto asset exchange, will handle investment and custody services.
Morningstar Japan is cited as providing "adoption ratio advice" for the portfolio, suggesting that the 50% XRP allocation may be indicative rather than final. Fundraising is anticipated to commence in the summer of 2020.
Alongside this crypto fund, SBI also provided details on a separate "4+5 Fund," referencing Industry 4.0 and Society 5.0. This fund is slated to reach up to JPY 100 billion (approximately $928 million).
SBI’s Comprehensive Digital Asset Strategy
The presentation outlined a six-point strategic plan, with four key areas directly related to blockchain and digital assets.
Establishing a Global Digital Asset Framework
SBI plans to create a worldwide organizational structure for digital assets. The company listed 13 firms in which it holds investments, including Bison, R3, Securitize, Templum, and Ripple. SBI expressed intentions to either deepen business alliances with these companies or convert them into subsidiaries.
Transforming Finance with Security Token Offerings
A significant part of SBI’s strategy involves revolutionizing financial transactions through security token offerings (STOs). The self-regulatory STO Association, launched nine months prior, is central to this effort. The association has expanded from six to ten founding members, adding major institutions like SMBC Nikko Securities, Tokai Tokyo Securities, Mizuho Securities, and Sumitomo Mitsui Trust Bank, along with 14 supporting companies.
A world map illustrating SBI’s STO ecosystem featured prominent partners such as Boerse Stuttgart, Securitize, and Templum.
Advancing Supply Chain Management with Blockchain
SBI aims to support large corporations in implementing blockchain technology for supply chain management. A case study featured Siam Cement Group, which utilized R3’s Corda blockchain in collaboration with Digital Ventures and Accenture.
The company also highlighted its partnership with SMBC, which includes a memorandum of understanding for SMBC to acquire a 14% stake in SBI R3 Japan. SBI would retain a 51% majority, while R3 holds 35%. The presentation reiterated SBI’s claim as the largest external shareholder of R3. SMBC is also a participant in the Corda-based Marco Polo trade finance platform.
Enhancing Payments with MoneyTap Application
SBI continues to leverage its Ripple-based MoneyTap application to offer low-cost payment services across Japan. The platform now boasts 35 participating banks. Originally part of the SBI Ripple Asia joint venture, MoneyTap has since been spun off into an independent entity. The presentation indicated that MoneyTap would "consider accepting an investment from U.S. Ripple."
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Frequently Asked Questions
What is the allocation of SBI’s new crypto asset fund?
The fund is designed with 50% allocated to XRP, 30% to Bitcoin, and 20% to Ethereum. These figures are advisory and may be adjusted based on market conditions and expert recommendations.
Which companies are involved in SBI’s digital asset ecosystem?
SBI has invested in multiple blockchain-focused firms, including R3, Securitize, Ripple, and Templum. The group aims to either strengthen alliances with these companies or integrate them as subsidiaries.
How does SBI plan to use blockchain in supply chain management?
SBI is collaborating with large enterprises to implement blockchain solutions for supply chain transparency and efficiency. A notable example is the partnership with Siam Cement Group using R3’s Corda platform.
What is the status of SBI’s MoneyTap application?
MoneyTap, initially developed under SBI Ripple Asia, is now an independent venture offering low-cost payments in Japan. With 35 banks onboard, it is considering an investment from U.S.-based Ripple.
What is the significance of the STO Association in SBI’s strategy?
The STO Association plays a regulatory and promotional role in security token offerings. Its expansion to include major financial institutions underscores SBI’s commitment to advancing tokenized securities.
How is SBI connected to R3?
SBI claims to be the largest outside shareholder of R3, a leading enterprise blockchain software firm. Their collaboration includes joint ventures and the use of Corda technology in various projects.