SBI Holdings Expands Crypto Offerings with Lending Platform

Japanese financial services firm SBI Holdings has been active in the cryptocurrency space this year, inking partnerships and launching new products. Its latest foray is into the cryptocurrency lending business.

Short-Term Lending Now Possible

Earlier this week, SBI Holdings announced the launch of VC Trade Lending, a new lending platform for Bitcoin. The announcement explained that users would be able to lend their crypto tokens to the firm. In return, they earn one percent in non-taxable returns.

The product will be handled by SBI’s crypto subsidiary, SBI VC Trade. SBI confirmed that it would initially support Bitcoin, although it will bring compatibility with Ether and XRP in the future. Customers have a minimum lending amount of 0.1 BTC ($1,863) and a maximum of 5 BTC ($93,210).

The financial services giant has also assured users that the tool will only charge fees for yen withdrawals. There would be no fees for deposits in yen or crypto, and the tool won’t take any membership or account management fees. It is unclear whether users will be able to make deposits in any other fiat currency.

SBI On a Roll 

SBI has been active in the crypto space this year. The company began with a partnership with Ripple Labs that allowed the former to pay its shareholders in XRP.

As Coinpost reported in January, SBI inked the deal to offer shareholders up to 8,000 yen in benefits. The agreement was solidified as far back as 2016, although shareholders would need to own at least 100 of the company’s shares to qualify.

Now, the Japanese firm appears fixated on ending 2020 just as strongly as it began. Over the past few months, the company has been digging deeper into the crypto space, taking up more market share and capitalizing on the industry’s resurgence.

In September, Nikkei reported that SBI Holdings planned to set up a blockchain-based stock exchange in Osaka and Kobe.

Yoshitaka Kitao, president and CEO at SBI Holdings, announced the plans at an event. He explained that they would partner with the Osaka Prefecture, to establish a fledgling financial hub in the region.

As the report added, SBI plans to attract Fintech companies worldwide and contribute to the region’s financial development. Kitao reportedly emphasized that this could be Osaka’s last chance to “gain the status of an international financial center.” He also argued that the development would create employment and improve Osaka’s economy.  

The company also took a bold step last month with the acquisition of TaoTao exchange. The acquisition will see TaoTao join SBI Liquidity Market, the financial service giant’s derivatives and foreign exchange arm, per an official announcement.  

Taotao was previously owned by Yahoo! Japan, and it launched a crypto trading service last May. As SBI explained, the acquisition will improve their expertise and ability to provide crypto services.

“In the future, we will make maximum use of the management resources such as knowledge of the SBI Group as a comprehensive financial group, as well as the customer base and service expertise of the crypto assets that TaoTao has cultivated so far,” the release highlighted.