- SBI Holdings CEO Yoshitaka Kitao reveals that the Japanese financial services giant has been considering paying shareholder dividends in the form of XRP tokens.
- The opt-in program is expected to launch during the fiscal year ending in March 2020.
- This latest move provides substantial credibility to Ripple and its overall ecosystem.
SBI Holdings CEO Yoshitaka Kitao reveals that the Japanese financial services giant has been considering paying shareholder dividends in the form of XRP tokens. They have decided to do this after their subsidiary, Morning Star began offering their shareholders dividends in XRP earlier this August. The opt-in program is expected to launch during the fiscal year ending in March 2020.
SBI Holdings, also known as the Strategic Business Innovator Group, is a publicly-traded company based in Tokyo, Japan. They engage in securities, banking, and insurance and provide a wide range of financial services. The SBI Holdings Group has already partnered with Ripple to develop and bring about more fintech distributed ledger solutions for its banking consortium.
This latest move by a company with such stature, in the distribution of XRP dividends for SBI Holdings stockholders, will provide substantial credibility to Ripple and its overall ecosystem.
As per reports, those who hold 100 shares of SBI Holdings will receive dividends, i.e., 30 XRP tokens within the SBI VC Trade wallets. Morning Star will conduct the XRP dividend payout process.
Morning Star says that virtual currency already has a massive global presence, especially in the settlement, remittance, and operation. Specifically, the practicality of virtual currency XRP will further increase in the future. Therefore, they believe it will be one of the crucial asset classes in asset management.
This is the first time a traditional finance firm is using XRP as a dividend offering for its shareholders. This event is notable for its innovation and ingenuity, but it is not the first time a company will distribute tokens as dividends to shareholders of a specific entity. Overstock recently promised tzerop tokens (tokens of its subsidiary Tzero) for those who hold at least 10 Overstock shares.
The two firms, SBI Holdings and Ripple have worked in the past, especially closely on their joint venture SBI Ripple Asia, which was formed to promote XRP usage in Asian financial markets in 2016.
According to the financial report from October 2019, SBI emphasized the growing importance of Ripple’s technology in its remittance division SBI Remit and also in the development of Ripple’s xCurrent-based remittances.