Bitcoin (BTC) on the way to becoming as rare (if not more) scarce than gold: if you can no longer buy it, you can still resort to borrowing. SBI Group will soon offer BTC loan services, remunerating its lending clients.
Bitcoin loans soon ready on SBI
The finance giant SBI Group should proceed with the establishment of a cryptocurrency lending service through its subsidiary, SBI VC Trade.
According to a November 24 press release, this new borrowing platform should allow users to lend their cryptos to SBI and to receive compensation at the rate of 1%, taxes included.
This new service called VC Trade Lending, will initially be restricted to Bitcoin. However, the company already has plans to add the ’Ether (ETH) and Ripple (XRP) in the near future.
The minimum loan amount is 0.1 BTC and the maximum amount is capped at 5 BTC.
SBI looks sweet to cryptophiles and Ripple
SBI indicated that VC Trade Lending would not charge an account management fee or annual membership fee.
Yen and crypto deposits are also free of fees; on the other hand, a commission will be levied on withdrawals in yen.
SBI Group had proceeded through its subsidiary SBI Liquidiy Market, with the acquisition of Tao Tao, an exchange previously 40% owned by YJFX of Yahoo Japan.
SBI now has 2 crypto-trading platforms given that SBI VC Trade already offered this type of service.
SBI is also a major partner of Ripple. In October 2020, the CEO of SBI, Yoshitaka Kitao, had declared that Ripple would probably settle in Japan if the company decides to leave the United States.
Wouldn’t it have made more sense for the SBI to offer Ripple loans first, given the group’s love of Brad Garlinghouse’s crypto? Ripple had added the chairman of the SBI to its board of directors. SBI Holding Japan announced earlier this year that it will pay part of its shareholders’ dividends in XRP. Bitcoin seems to have priority over altcoins, however. At the same time, BTC is approaching $ 20,000 thanks to a rally backed by institutional investors: a race that was enough to push it past the Japanese darling crypto?
Litecoin, welcome in the Silver Age