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Ripple Most Likely to Relocate Blockchain Firm to Japan Over Other Countries, Says SBI Holdings CEO

It appears that blockchain firm Ripple Labs may favor Japan over other locations when considering new headquarters outside of the United States.

Japan favored by Ripple

The CEO of SBI Holdings, Yoshitaka Kitao, disclosed this detail in a press briefing. The Japanese corporate giant’s chief executive officer said that among all potential candidates for Ripple’s move, notably Singapore, Switzerland, the United Arab Emirates, UK, and Japan, the latter was “the leading candidate” of choice for Ripple (XRP) operations if they were to leave the US.

Per the briefing, Kitao indicated that SBI Holdings was already a Ripple investor, which may serve to justify why Japan would be a rightful choice for Ripple if it acts on its wishes to relocate. Other indications seem to imply that Japan is likely the first choice of Ripple co-founder Chris Larsen and CEO Brad Garlinghouse, as they have both previously expressed their attitudes regarding Japan.

SBI Holdings and Ripple – fintech partners

The two have made it publicly known that due to the lack of crypto regulatory clarity in the United States, they may be considering other countries for Ripple operations, as it will be more beneficial for XRP trades and cryptocurrency-related business in general. Garlinghouse previously said:

“Japan has been one of our strongest markets. We have a very successful partnership there with a group called SBI. They are actually our largest outside investor, and the CEO there, Kitao-san, has been an innovator and pioneer in a lot of things around finance and technology (of fintech).”

Ripple endorses MoneyTap

The positive sentiment towards Japan seems to be strengthening as recently, Ripple backed SBI Holdings by investing in its subsidiary, a payments firm called Money Tap. Per the official report released by the Japanese bank:

“Money Tap develops a next-generation payment platform that uses Ripple’s technology to promote 24-hour and realtime payments. The company, using such solution, offers smartphone app Money Tap.”

In explaining the functions of MoneyTap further, the report read:

“Money Tap enables consumers to make payments between bank accounts at their own bank or to another bank via a bank account, phone number, or QR Code, distinguishing itself from other mobile remittance services with its QR code payment function.”

With this Ripple-SBI Holdings partnership, Ripple-powered technology may be increasingly leveraged across payment services in Japan to provide a seamless transaction experience for Japanese clients. It was also disclosed that in the near future, new Japanese ATM software may be created and powered by MoneyTap, as a new feature.

Blockchain-powered digital payments thrive amid COVID-19

With the enhanced integration of Ripple blockchain technology in Japan, distributed ledger technology adoption may be even more pronounced within the country. In fact, despite the global coronavirus pandemic, blockchain innovation and digital asset adoption have been on the rise, according to Ripple. Per its annual Blockchain in Payments report:

“Blockchain payment solutions are scaling; Digital assets are increasingly being considered for facilitating payments, especially when paired with blockchain technology; Industry innovators are realizing significant growth, even amid COVID-19.”

The report indicated that across North America, Europe, the Middle East and Africa, Latin American and the Asia Pacific regions, blockchain and cryptocurrency knowledge was recorded at “a whopping 82-94%.”

Ripple also noted through a previous survey that amid COVID-19, the digital payments industry had thrived and even subsequently accelerated in growth. The survey depicted that 99% of its respondents would consider leveraging digital assets to instantly process cross-border payments, which is up from 94% if compared to 2018 statistics.

Standard Chartered raises $36m for crypto custody platform

Standard Chartered has raised $36 million in a new series A funding round for its cryptocurrency custody subsidiary, Zodia Custody. The funding round was led by Japanese financial conglomerate SBI Holdings, which reportedly became the second-largest shareholder in Zodia Custody. Prior to this funding round, Zodia was backed exclusively by Standard Chartered and Northern Trust, with Standard Chartered holding a 90% stake in the firm. However, it remains the majority shareholder even after the latest fundraise, according to Zodia Custody CEO Julian Sawyer.

Zodia Custody was launched in December 2020 as a joint venture between Standard Chartered and Northern Trust, with a focus on providing custody services for digital assets. The platform is designed to provide institutional investors with a secure and compliant way to store their cryptocurrencies. With the new funding, Zodia plans to expand its offering and develop new products and services for its clients.

Standard Chartered’s move to raise funding for its crypto custody platform is part of a larger trend of global banks expanding their capabilities in the cryptocurrency space. As more institutional investors look to gain exposure to cryptocurrencies, banks are stepping up to provide the infrastructure and services needed to support this demand. In addition to Standard Chartered, other major banks such as JPMorgan, Goldman Sachs, and Bank of New York Mellon have all recently announced plans to offer cryptocurrency-related services to their clients.

The involvement of SBI Holdings in the latest funding round is notable, as the Japanese conglomerate has been a major player in the cryptocurrency space for several years. SBI Holdings operates a number of cryptocurrency-related businesses, including a crypto exchange and a mining subsidiary. The firm has also invested in several blockchain startups and is known for its bullish stance on cryptocurrencies.

In summary, Standard Chartered has raised $36 million in a funding round for its cryptocurrency custody subsidiary, Zodia Custody, with SBI Holdings leading the round. The move reflects a larger trend of global banks expanding their cryptocurrency-related capabilities to meet growing demand from institutional investors. With the new funding, Zodia plans to expand its offering and develop new products and services for its clients.

SBI Holdings to Launch Investment Fund for Emerging Companies like Web3, AI, and Metaverse Startups

SBI Commits to Bolstering Startups in Japan

SBI Holdings, a major financial conglomerate in Japan, has announced its plan to start operating an investment fund by the end of 2023, focusing on startups in sectors like Web3, artificial intelligence (AI), and the metaverse. As reported by Nikkei on November 8, 2023, this fund aims to bolster the burgeoning startup ecosystem in Japan.

The fund is expected to reach up to 100 billion yen, with individual investments ranging from several hundred million to a few billion yen. It aims to invest in 150 to 200 companies. SBI is drawing investment from major and regional banks in Japan, supporting the development of domestic startups.

Collaborative Funding from Major Financial Institutions

Significant financial players, including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group, have already committed over 50 billion yen. This level of venture capital (VC) funding is relatively rare in Japan, and an SBI representative emphasized to Nikkei the importance of having financially robust backers to nurture globally competitive startups.

Japan’s Current Landscape and Goals for Startups

Japan currently faces challenges in cultivating startups. In November 2022, under Prime Minister Kishida’s administration, the “Startup Development 5-Year Plan” was established, addressing the lower rates of new business openings and unicorn companies (privately held startups valued at over 100 billion yen) compared to the US and Europe.

The administration aims to implement “New Capitalism,” seeing startups as vital in transforming societal challenges into engines for sustainable economic growth. The 5-Year Plan sets a target to increase startup investment from 800 billion yen (as of 2022) to over 10 trillion yen by 2027. It also aims to establish Japan as Asia’s leading startup hub by creating 100 unicorns and 100,000 new startup companies.

Enhancing the Ecosystem for Web3

For startups, particularly in emerging fields like Web3, both financial support and a conducive environment are essential. The Japanese government recognizes the need for tax reforms pertinent to Web3 companies in its “New Capitalism Grand Design and Implementation Plan 2023 Revised Version.”

Corporate taxes for Web3 companies have been partially reformed in the fiscal year 2023, exempting self-issued cryptocurrencies from market value evaluation under certain conditions. Financial Services Agency and the Ministry of Economy, Trade and Industry are advocating for further reforms for third-party held cryptocurrencies in the fiscal year 2024 tax revisions. The final decision on these reforms by the Tax Commission is expected to be concluded by mid-December.

Understanding Web3

Web3, often termed as the “next generation of the internet,” is a decentralized network built on blockchain technology, encompassing elements like NFTs and cryptocurrencies. It marks a shift from the one-way information flow of the initial Internet (Web1) and the current centralized Internet (Web2).