John Deaton, the creator of CryptoLaw and a well-known crypto enthusiast and XRP supporter, offered his thoughts on recent reports that Japanese megabank – Sumitomo Mitsui Financial Group Corporation (SMFG) may buy a stake in SBI Holdings, a significant Japanese financial institution. The deal’s estimated value is 590 million dollars.
Given SBI Holdings’ connections to the cryptocurrency business, Deaton believes the transaction could have a favorable long-term effect on Ripple (XRP). SBI is a significant XRP investor, and Yoshitaka Kitao, the head of the financial organization, is a well-known supporter of Ripple who even served on the board of the cryptocurrency company for two years.
Japan’s largest financial institutions getting ready to use crypto?
First of all, it is important to clarify that SMFG’s ambition to buy a 10% stake in SBI Holdings‘ operations is intended to boost the company’s position in the securities services market. SMFG’s assets are believed to be worth $2.2 trillion.
If it goes through, the merger will continue the 15 years of collaboration between the two prestigious Japanese financial corporations. It’s also important to note that two conglomerates jointly invested in Ripplenet Moneytap, one of Ripple’s products.
Perhaps the two Japanese financial behemoths’ growing ties are laying the groundwork for the country of Japan to adopt and employ blockchain technology and cryptocurrencies on a much larger scale. Given SBI’s investment in Ripple (XRP), which is widely regarded as the finest in the creation and application of corporate crypto solutions, the deal in this instance appears to make a lot of sense.
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