Japanese financial services group SBI Holdings has yet again shown support for Ripple. This comes at a time where Ripple is slugging it out with the U.S Securities and Exchange Commission. SBI’s subsidiary Morningstar would offer its shareholders rewards in XRP tokens. This dividend payout option makes it the second time the company is offering this package. Morningstar is a Tokyo-based firm that provides financial and research services to businesses in Japan.
After the SEC filed a lawsuit against Ripple, many cryptocurrency exchanges and companies parted their ways with Ripple and its XRP token. However, SBI stood firm in its support for XRP.
SBI Holdings Reward Shareholders
The financial information services company would continue what is gradually becoming a tradition, per an official announcement. The first program was carried out in August 2019.
To be eligible for the program, shareholders would have to possess a minimum holding of 100 stocks. Shareholders also have to apply by May 31 to receive the incentive. Those who hold at least 100 stocks could receive 2,500 yen (roughly $25) worth of XRP. To be eligible for the free XRP tokens, Morningstar would require shareholders to open user accounts with SBI’s crypto subsidiary.
The company would determine the exact amount of XRPs to gift shareholders on June 30, based on the market price. The reward will be in addition to the dividends received by the company shareholders.
This comes when U.S regulators are attempting to prove XRP’s status as security in U.S courts.
Ripple Continues to Soar in Asia
As Ripple faces regulatory backlash in the U.S, countries such as Japan and others in Asia continue to stand by the company.
Recall that Brad Garlinghouse had stated that Ripple’s business in Asia was in no way affected by the SEC lawsuit. He attributed their success in the region to the company’s good standing with the regulators and a raft of strong partnerships.
Japan and other Asian countries have historically been favorable towards Ripple and XRP. This can be seen in the long-term partnership between SBI and Ripple. The joint venture set up by the two companies is aimed at promoting the use of blockchain infrastructure and XRP in cross-border payments.
Last month, the Japanese company extended its digital currency lending support to XRP tokens.
Meanwhile, SBI is no doubt heavily invested in cryptocurrency services. Apart from its strong partnership with Ripple, the financial giant has also been ramping up its crypto portfolio by acquiring local exchange Tao Tao last year.