SBI Holdings, one of Japan’s leading financial conglomerates, is introducing its first blockchain-based bond, offering individual investors rewards in XRP, currently the fourth-largest cryptocurrency by market cap.
The news has generated significant buzz in the XRP community, representing a notable step forward in the cryptocurrency’s growing acceptance and use in conventional financial systems.
In a Feb. 20 notice, SBI Holdings revealed that it is preparing to issue Security Token (ST) Bonds for individual investors, totaling 10 billion yen (roughly $64.6 million).
Known as SBI START Bonds, these securities are fully managed on-chain via BOOSTRY’s “ibet for Fin” platform, a dedicated enterprise blockchain solution for issuing security tokens.
According to SBI, investors in these bonds are eligible to earn rewards in XRP tokens.
Retail investors residing in Japan, as well as companies that invest over 100,000 yen (approximately $650 million) and maintain an account with SBI VC Trade, can receive XRP rewards proportional to the size of their subscription.
The rewards, outlined on the product page as 200 yen of XRP for every 100,000 yen invested, will be distributed at issuance and on each interest payment date through 2029.
Secondary trading of the bonds is slated to begin on March 25 through the Osaka Digital Exchange’s proprietary “START” trading platform. The three-year bonds carry an indicative annual interest rate ranging from 1.85% to 2.45%, with interest paid twice a year.
SBI Holdings has maintained a long-standing relationship with Ripple since forming a partnership in 2016 and has consistently supported XRP. One of its subsidiaries has even distributed XRP directly to shareholders and facilitated XRP-based remittances between Japan and the Philippines.
According to SBI Chairman and CEO Yoshitaka Kitao, the company currently holds approximately 9% of Ripple Labs.
Ripple announced last year that it had signed a memorandum of understanding with SBI that would see the US dollar-backed RLUSD stablecoin distributed in Japan this year via SBI VC Trade, the group’s licensed crypto exchange.
