SBI cryptocurrency exchange will allow its users to lend XRP and enjoy a 0.1% annual return
Japanese cryptocurrency exchange SBI VC Trade announced yesterday that it was adding XRP to its lending services. The cryptocurrency exchange, a subsidiary of Japan-based financial services company SBI Holdings, revealed that the latest development would allow its users to lend XRP in return for interest.
SBI VIC Trade added that the XRP lending service is available right away, and users will enjoy a lending period of 84 days. The cryptocurrency exchange has imposed certain conditions users need to abide by if they intend to borrow XRP from the platform.
The platform set the minimum loan amount at 1,000 XRP while users can borrow up to 100,000 XRP. SBI VIC Trade termed its interest as ‘usage fee,’ and borrowers would pay 0.1% per annum, including tax.
The cryptocurrency exchange has been around since 2018 as SBI Holdings launched it to serve as its cryptocurrency trading arm. The exchange launched its cryptocurrency lending service in November last year, allowing traders and investors to loan Bitcoin at 1% interest. It is now adding XRP to its lending service and intends to add Ether (ETH) in the future.
SBI has maintained a business relationship with Ripple, the blockchain payments firm associated with XRP, over the years. XRP has had a roller-coaster few months after seeing its value plummet in December. The US Securities and Exchange Commission (SEC) took Ripple to court late last year, accusing the firm of breaking securities laws by selling the cryptocurrency as an unregistered security.
XRP saw its price decline by more than 60% within a few days, and several crypto exchanges delisted it from their platforms. The cryptocurrency rallied over the weekend as investors attempted to push the price higher. However, XRP couldn’t sustain its rally and ultimately lost 40% of its value within a short period. It is slowly recovering after rising by nearly 12% over the past 24 hours.
While several cryptocurrency exchanges like Coinbase and OkCoin have halted XRP trading, SBI said it would not delist it since XRP isn’t considered security in Japan. Ripple executives believe XRP will survive as it is not considered security in several parts of the world.