Finance giant SBI expands cryptocurrency lending service to XRP

Japanese financial services company SBI Group has enabled XRP lending through its cryptocurrency-related subsidiary, SBI VC Trade.

According to a February 4 announcement, SBI VC Trade Lending users can now earn interest by depositing their XRP holdings between 1,000 and 100,000 XRP. The loan period is up to 84 days.

“VC Trade Lending is a service that allows customers to rent their crypto assets to the company and receive interest premiums based on the amount and duration of the crypto assets,” SBI explained. The annual interest rate for awarding XRP is 0.1%, including taxes, the announcement says.

The XRP interest rate is significantly lower than the interest rate for lending Bitcoin (BTC) to SBI. The company officially launched its crypto lending platform in November 2020, allowing users to earn 1% interest from depositing BTC.

The new listing on SBI’s lending platform is related to ongoing legal issues for the altcoin. Ripple – the company behind several XRP-based products – is now facing a federal lawsuit in the US for alleged violations of US securities laws through the sale of unregistered securities. However, Japan’s Financial Services Agency believes that XRP is not a security.

SBI has grown into a major Ripple partner and introduced several XRP-based products. In October 2020, SBI CEO Yoshitaka Kitao said Japan is the most likely country Ripple will move to if the company is forced to leave the US.