The Japanese financial services company SBI Group will establish a “Crypto-asset Fund” that allocates 50% to XRP, 30% to Bitcoin, and 20% to Ethereum.
SBI Group and Ripple
The SBI Group has been one of the earliest and biggest investors in Ripple. SBI has been actively promoting Ripple and XRP across the region, even creating a joint venture with Ripple, SBI Ripple Asia. SBI Ripple Asia is expected to go into production with On-Demand Liquidity, one of Ripple’s products, this year. ODL uses XRP to source liquidity to avoid pre-funding accounts, allowing financial institutions to free up the capital held in nostro and vostro accounts.
Thirty-five Japanese banks have also invested in Money Tap, a consumer-focused blockchain money transfer app built by SBI and Ripple, three of which are using it for remittances. Negotiations are underway to connect twenty more FI’s to Money Tap, the most cost-effective service in the new Japanese QR standard.
According to a briefing released today, on June 26, SBI is planning to establish “Japan’s First Crypto-asset Fund”.
This will be made possible through a partnership with an institution that will remain anonymous, for now.
While the identity of the partner was not revealed, details on the timeline and other involved parties were made public. Fundraising is expected to begin during the summer of 2020. The fund will provide individual investors with a “crypto-asset fund that embodies the resources of the SBI Group”. Using crypto-assets, which have a low correlation to traditional assets such as stocks, bonds, etc., will enhance the effectiveness of diversification.
SBI Alternative Investments Co. Ltd., an SBI group company, will establish and manage the fund, while SBI VC Trade will be used for investment and custody of the assets. The fund will allocate 50% to XRP, 30% to Bitcoin, and 20% to Ethereum, as per Morningstar’s advice.
The large percentage allocation to XRP speaks volumes, both in regards to how much faith SBI holds in the crypto asset as well as XRP’s popularity in Japan. SBI is continuing to support Ripple and XRP, actively promoting them not only in Japan but in the wider region as well.