Japanese financial giant SBI Cheng Ruibo publicity ambassador? Plan to send XRP to shareholders

SBI Holdings, a unit of Japanese financial giant SBI Group, announced today that it will distribute dividends to shareholders in the form of Ripple (XRP), which will undoubtedly make XRP fans cheer.

Morningstar, a joint venture of SBI, revealed in a press release on Wednesday morning that the company will issue 30 XRPs to shareholders holding more than 100 shares of the company, which will be implemented on September 30 this year.

Tray

Although this move with SBI may benefit XRP and its holders, the effect is unlikely to be significant – there will be no positive effects in the short term.

SBI shareholders interested in participating in the program will need to create a trading account through SBI Holdings by March 31, 2020.

It is also worth noting that Ripple has established close cooperation with SBI. In 2018, Ripple and SBI collaborated with MoneyTap, a blockchain payment application system, to form a new company called SBI Ripple Asia, which provides trading and trading channels for users in Japan and overseas.

But is such a deal sufficient to alleviate the downward pressure on XRP's recent price, including the impact of Ripple sales activities on XRP?

The XRP and even the entire cryptocurrency market experienced a significant price decline in the past 24 hours. Since the news about SBI came out this morning, the price of XRP has risen slightly, and the current transaction price is about 0.25 US dollars.

However, SBI's plan is likely to dominate the trend of XRP. Although XRP is still a popular cryptocurrency, it does not have the influence, presence or market value of Bitcoin. In fact, most exchanges are not specifically for XRP transactions.

In addition, these dividends are only issued to SBI shareholders, and SBI shareholders are still small groups compared to the number of investors in the Bitcoin and stock markets.

In the long run, this move will almost certainly benefit XRP, but we may only see the change after the first dividend payment has been completed and the SBI Ripple Asia transaction lasts for a long time.

Despite this, SBI is confident in this asset and claims that XRP will be "one of the most important asset types in asset management."

“Virtual currency (encrypted assets) has been used globally for various scenarios, such as settlement, remittance and operations, especially for virtual currency XRP for global remittances, and its usability will increase further in the future. Therefore, we believe it Will become one of the important asset types in asset management."