Crypto firm Ripple has been drowning deep in legal hot water after United States’ Securities and Exchange Commission [SEC] filed a lawsuit alleging that XRP is an unregistered security. However, despite a slew of crypto firms pulling out their support for the token, some partners remained onboard.
For instance, the Japanese financial behemoth SBI group’s crypto subsidiary, SBI VC Trade launched lending for XRP on its platform. This would enable XRP holders to earn interest by depositing their holdings under the VC Trade Lending service.
The statement said:
“VC Trade Lending is a service that allows customers to rent out their crypto assets to the company and receive usage fees according to the quantity and duration of the crypto assets.”
SBI further explained:
“Today, we have started handling XRP in the rental crypto asset VCTRADE LENDING service. By lending the XRP owned by the customer to us, you can receive the usage fee according to the quantity and period of the loan.”
Deposits could range from 1,000 tokens to 100,000 tokens, with a lending period for 84 days. To add on, the usage fee is set at 0.1 % per annum.
XRP is the second asset to be added to its portfolio after SBI VC Trade launched the lending service in November 2020. Until now, Bitcoin was the only cryptocurrency on its platform with deposits starting at 0.1 BTC. Previously in November, the SBI Group hinted at adding Ethereum lending to its platform as well.
The latest addition of XRP might encourage more users to invest in the digital asset boosting its credibility – especially as its fate is in the hands of regulators after the ongoing legal issues against the altcoin.
SBI Holdings has been a constant supporter for XRP and even declared it as a “cryptocurrency asset” under Japan’s law. And this move will boost the adoption of the digital asset by making it more accessible.
At the time of writing the price of XRP stands at $0.43 and has a market cap of over $17 bn.