SBI Group is a humungous financial services company based in Japan, which has investments in sectors like Information Technology, Biotechnology, life science, mobile/wireless, environment, and energy.
SBI Holdings, Inc., together with its subsidiaries, engages in the online financial service businesses and investment activities in Japan and internationally.
The most important and well-known in the cryptocurrency realm is the joint venture partnerships with the likes of Ripple or R3 and many more.
SBI Holdings has completed a circle of partnerships which might seem random on the surface but has more to it. These partners include Ripple, a U.S. based company that is trying to disrupt the banking and financial sector as a whole through its blockchain-based payment products and solutions, and R3, an enterprise blockchain software company which is involved in research and development of DLT.
SBI + Ripple
Ripple has over 200 partnerships with various banks and financial players which are spread across the world. Ripple is leveraging its proprietary products like xVia, xCurrent, and xRapid to process payments in a more fast, secure and transparent way than the traditional ones.
SBI Group partnered with Ripple and created a joint venture called “SBI Ripple Asia Co., Ltd.” to provide a next-generation payment platform powered by DLT [Distributed Ledger Technology] to financial institutions and remittance transfer providers in Asia as a joint venture of SBI Holdings and Ripple, a US FinTech venture.
Moreover, the JV promotes to create a next-generation settlement platform for international and domestic use which will largely reduce the remittance cost and the time required for the payments to be completed.
One of the important outcome out of this partnership was MoneyTap, which makes use of Ripple’s xCurrent DLT technology to facilitate inter-day banking transfer, which provides a 24-hour/7 payments service to all the customers in Japan.
SBI Group’s CEO, Yoshitaka Kitao has always been very bullish when it comes to XRP and plans to make use of the cryptocurrency to capture Japan’s financial industry. Kitao had stated:
“XRP is faster, cheaper and more scalable than any other digital asset. I strongly believe it will become the global standard in digital currencies.”
Ripple and R3 have settled their legal dispute on September 10, 2018, which provided a path for the joint venture between R3 and SBI.
SBI + R3
R3, an enterprise blockchain software company which leads a consortium of over 250 banks and financial industries, central banks, in research and development of distributed ledger technology partnered with SBI Holdings to create a JV called “SBI R3 Japan Co. Ltd.” on January 28, 2019.
R3 is concerned with the development, maintenance, and marketing of their application “Corda” which is an open source blockchain project which allows the building of interoperable blockchain networks that transact in privacy utilizing their smart contract technology.
The company recently announced that Corda network was live and that XRP will be used as a currency to settle transactions.
SBI Holdings plans to make use of the partnership of Ripple and R3 to extend a solution across all the sectors of the industry which is not only faster but secure and tamper-proof.
Recent reports by SBI Holdings stated:
“R3-Ripple solution: Become a global standard for financial operations such as international money transfers and trade finance”
SBI plans to make use of these partnerships not just to disrupt the traditional financial systems but also use these across all industries, which include real estate, healthcare, supply chain, Forex industry, global cash management, etc.
Entry of XRP into either one of the above-mentioned markets, especially the “Forex industry” could make a huge difference in how we perceive XRP and the price, as a result, would sky-rocket to unfathomable amounts.
Most importantly, will Ripple lose its grip on the remittance industry to R3? The recent partnership of R3 with SBI puts R3 in a more comfortable position as compared to Ripple. However, this is not the full story, but just a glimpse of what SBI might be planning behind closed doors.
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Ripple’s initiative invests in Bolt Labs to improve secondary payment channels and expand interoperability
Ripple’s arm, Xpring which invests and incubates in companies and individuals which help improve the XRP ecosystem, invested in Bolt Labs. With the new investment, Xpring hopes to develop solutions that will help improve the security of secondary payment channels and increase the interoperability by integrating with the ILP.
Bolt is a private, off-chain scaling solution which was built on top of Z-cash, a privacy-focused cryptocurrency, has attracted more than a few well-known investors in the crypto-space and Ripple’s Xpring is one among them. In a blog, Bolt Labs said that their solution will focus not only on ZCash but also other publicly available cryptocurrencies that do not have inherent on-chain privacy features.
It also stated:
“The potential for these implementations to be networked together with technologies like Interledger opens the potential further for cross-chain interactions with these privacy guarantees baked in.”
The above statement suggests that they might have a “potential” implementation for these on Interledger Protocol [ILP]. ILP was created at Ripple developed by the Interledger W3C Community Group. ILP aims at connecting two different blockchains, to integrate two different ledgers and have seamless operations between them.
This would vastly benefit the payments industry, which is facing a revolution at the hands of a nascent technology like blockchain. Ripple, a payments provider, which is leveraging cryptocurrency and blockchain to facilitate faster payments, would benefit largely from this partnership. In addition, this could also signify a potential development on the XRP Ledger and its on-chain/off-chain privacy and the currency, XRP.
A Twitter user @XRPCentre tweeted:
“If the solutions being developed by the company are able to improve the privacy of the ILP transactions, they would also be enhancing the privacy of XRP/ILP payments, which is a very demanded feature…. It’s all about interoperability and destroying network effects. If ILP succeeds in being the best protocol for cross-protocol/ledger transactions, you’d naturally search for the best asset therein.”
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