It seems as if the traditional world the new world are merging. Not in a conventional manner but in a more nuanced and innovative way. At least, this is what those who are in the new blockchain and cryptocurrency-based sector would think.
Concepts such as shares, dividends, and other traditional financial mechanisms are used in this new era differently.
This is seen in a surprising move by SBI Holdings. The company, primarily, it’s subsidiary Morningstar, will provide its shareholders with XRP token dividends through a cryptocurrency exchange called SBI VC Trade.
The move is an intriguing one and one to pay attention to in these early days of tokenization of assets and the progress toward blockchain integration in traditional finance.
What is SBI Holdings?
SBI Holdings, also known as the Strategic Business Innovator Group, is a publicly-traded company in Japan. Led by Yoshitaka Kitao, the vast entity engages in three core operations (securities, banking, and insurance). These activities are related to a wide range of financial services.
It is based in the financial hub and capital of Tokyo, in Japan.
SBI Holdings is comprised of many different companies such as its SBI Securities, SBI Sumishin Net Bank, SBI Insurance, SBI VC Trade, SBI Ripple Asia, the SBI Graduate Business School, and nonprofit entities as well. With over 6,000 employees, serving over 13 million customers, SBI Holdings is not a fly by night corporation.
Again, one should know that SBI Holdings is not a firm that cropped up overnight. It has been around for quite a while.
The SBI Group came into being in 1999 and has a vast network of companies and entities operate and interact with many different consumers in Japan. The SBI Group was incubated and accelerated by Softbank, another powerhouse of an entity in Japan and across the world. It continued to grow and make its way within the world of finance, nurtured and financed by Softbank.
The company is present on several prominent Japanese exchanges including the Osaka Securities Exchange and the Tokyo Stock Exchange. It branched out to a Hong Kong exchange (in 2011) and may be purchased there as a Hong Kong Depositary Receipt. The firm has a presence in China and commits to growing its operations and customer base in that growing economy as well.
The SBI Group has proliferated and nets operating revenues of more than ¥50.0 billion or $400,000,000 yearly. It will continue to progress and expand through its many different companies as it has recently invested in a financial firm in Indonesia.
It has ambitions to become a global corporation serving many customers all across the world.
A large conglomerate such as the SBI Holdings Group becoming more involved in the native digital asset that is XRP is essential to note. The group has already partnered with Ripple to develop and bring about more fintech distributed ledger solutions for its banking consortium. A group with more than 60 participants and regularly pushes the Ripple ecosystem forward.
This latest move by a company with such stature, in the distribution of XRP dividends for SBI Holdings stockholders provides substantial credibility to Ripple and its overall ecosystem.
How Does The SBI Holdings XRP Dividend Release Work?
Reports state those who hold 100 shares of SBI Holdings will receive XRP dividends.
Specifically, investors of SBI Holdings will receive 30 XRP tokens within the SBI VC Trade wallets. SBI Holdings investors may access their XRP tokens by signing for an SBI VC Trade account to redeem their XRP dividends.
SBI investors don’t have to fall under a specific classification (preferred or common stock). Any shareholder is entitled to these dividends.
Morningstar, a company within the SBI Holdings Group, will be conducting the XRP dividend payout process.
The entity recently released an announcement stating its integration of shareholder benefits and its intention to deploy digital currency on behalf of its shareholders. Participants must be shareholders by the record date of September 30, 2019.
“Virtual currency (cryptographic assets) is already used globally in various situations such as settlement, remittance, and operation, and in particular, the practicality of virtual currency XRP, which is used for efficient global remittance, will further increase in the future. As a result, we believe it will be one of the important asset classes in asset management,” Morningstar noted.
Investors should note that they must sign up for the VC Trade account by March 31, 2020.
The SBI Holdings Dividend is Not The First Instance of Crypto Dividends for a Traditional Company
This SBI Holdings event certainly sets a precedent in the financial services sector, as it is a partner of Ripple but does not have control of the digital token. This event might mark the first time that a traditional finance firm used XRP as a dividend offering for its shareholders.
While this event is notable for its innovation and ingenuity, one must remember that this is not the first time that 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.
Investors can still participate in this Overstock offering by holding ten shares of Overstock by the record date of September 23, 2019. The Overstock digital dividend offering will work similarly to SBI holdings.
Byrne, the prior Chief Executive Officer of Overstock, stated on “Five years ago, we set out to create a parallel universe: a legal, blockchain-based capital market. We’ve succeeded.”
Ripple and SBI Holdings
Ripple has a host of partnerships for its blockchain products, but its XRP use related products have not seen much traction. Its latest collaboration and substantial ownership in MoneyGram International are supposed to spur further demand and use for XRP.
But one thing that remains is the continued demand for XRP by general investors in the future.
Will investors of SBI Holdings, hold XRP for the long term or will they sell the XRP dividend as quickly as possible? Investor interest and long-term XRP holding potential is a critical component for future value appreciation in XRP.
The ZB Group’s Take
SBI Holdings is a prime example of substantial interest in DLT, the blockchain, and integration into finance. XRP utilization as dividends by SBI Holdings shows that prominent companies look at the blockchain more seriously.
The ZB Group views these events as reliable indicators of blockchain adoption and as a sign of more potential developments to come.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s BitHi.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open source their reports and analysis for the public.
Learn more about ZB Group by visiting www.zb.com.