Renowned crypto enthusiast and XRP supporter, CryptoLaw firm founder John Deaton has expressed his thoughts on the newest news of Sumitomo Mitsui Financial Group Corporation (SMFG) potentially purchasing a stake in another big Japanese financial business, SBI Holdings in a tweet today.
I believe this could be good news for #XRP in the long-term, considering SBI is @Ripple’s largest shareholder and the CEO, @yoshitaka_kitao, is a believer in #XRP, but I defer to @sentosumosaba on what it means, if anything. https://t.co/HQDby3H4AW
— John E Deaton (203K Followers Beware Imposters) (@JohnEDeaton1) June 22, 2022
Ripple connection of SBI Holdings’ and SMFG
According to Deaton, the purchase may benefit Ripple (XRP) in the long run due to SBI Holdings’ links with the crypto industry. SBI is a significant XRP investor, and its president, Yoshitaka Kitao, is a well-known Ripple supporter who remained on the crypto company’s board for 2 years.
It’s also worth noting that two firms have invested in Ripple’s Ripple Net Moneytap platform. Given SBI’s position in Ripple (XRP), which can be regarded as the finest in the creation and execution of corporate crypto solutions, the acquisition appears to be extremely logical in this scenario.
SBI Holdings and Sumitomo Mitsui Financial Group deal
As per information from sources as of June 21, Sumitomo Mitsui Financial Group (SMFG) of Japan is in final discussions to purchase a 10% share in SBI Holdings in order to strengthen its securities operations. The deal may be worth up to 80 billion yen ($587 million). As a classic megabank group, SMFG has a strong corporate client base in Japan, but SBI, which is relatively new, has a large number of youthful retail consumers. The two corporations are attempting to expand their domestic market penetration by combining their expertise.
SMFG in talks to buy 10% stake in SBI Holdingshttps://t.co/ceGeyL7cZi
— GiantGox (@GiantGox) June 21, 2022
Crypto adoption in banking firms in Japan
As per information, a prominent Japanese financial institution, Sumitomo Mitsui is planning to enter the cryptocurrency custody market. In this direction, the bank worked with Bitbank, a Tokyo-based bitcoin exchange, to launch a digital asset company earlier this year.
The recent news of buying 10% stakes in SBI Holdings’ company by SMFG’s is intended to boost its position in the securities services market. SMFG’s assets are believed to be worth 2.2 trillion dollars. If completed, the transaction will build on the two prominent Japanese financial organizations’ 15-year history of collaboration. It may be analysed that the strengthening cooperation between the two Japanese financial titans is laying the groundwork for greater broad adoption and usage of blockchain technology and cryptocurrencies in Japanese life.
About SBI Holdings
SBI Securities, a subsidiary of SBI Holdings, is Japan’s largest online securities firm with a substantial retail customer base. As of the end of March 2021, it had over 6 million customers but has failed to reach the corporate and rich person portions of the market. Its assets under management are around 19 trillion yen, which is less than those of large securities firms.
