SBI, a Japanese financial group has revealed its intentions to reward shareholders with interim incentives in the form of XRP Tokens. This decision was made to appreciate the loyalty of its investors using Ripples XRP, the third largest in terms of market capitalization.
SBI officially announced through the Morningstar arm that all shareholders with shares above 100 units would be rewarded with XRP 30 per unit. This is equivalent to $7.5 per 100 unit share for all holding the company’s share as at September 30, 2019.
This decision is justified by the global utility of cryptocurrencies such as Ripple for functions such as settlements and remittances. The practicality and the efficiency of the Token in the international market are also expected to increase with time.
Long Term Collaboration
From the group’s collaboration with Ripple in the SBI Ripple Asia remittance initiative, a lot of affiliations and partnership has been developed across Asia with its own trading platform in Japan. The partnership between the two entities has been ongoing since 2016.
XRP has continued to gain acceptance as an international remittance service and the token capitalization has even grown to contest the second position with Ethereum.
There are also plans to pay dividends with the Tokens by March of 2020, which is the end of the present financial year. This reward is just the tip of the iceberg as the company had asked TSE for permission to provide more profit returns to shareholders.
The stock exchanges in Asia is regulated and monitored by strict financial laws. According to the CEO of Ripple, Brad Garlinghouse, XRP Token is not a security. So the concern of stopping its trading due to its status as an unregistered security is baseless.
He also added that the relationship of Ripple with SBI is not exploitable as there had been claims that Ripple had been selling the Token at a increasing pace. This might be because the XRP trade at c. $0.25 and in the past 12 months has gone down by 27%.