The SBI cryptocurrency exchange enables users to borrow XRP and earn 0.1% annual return
Japanese cryptocurrency exchange SBI VC Trade announced yesterday that it is adding XRP to its lending services. The Cryptocurrency Exchange, a subsidiary of Japan-based financial services company SBI Holdings, revealed that the latest development would allow its users to lend XRP for interest.
SBI VIC Trade added that the XRP lending service is immediately available and users have an 84 day loan period. The cryptocurrency exchange has imposed certain conditions that users must adhere to if they want to borrow XRP from the platform.
The platform has set the minimum loan amount to 1,000 XRP, while users can borrow up to 100,000 XRP. SBI VIC Trade called its interest a “usage fee” and borrowers would pay 0.1% per annum including tax.
The cryptocurrency exchange has existed since 2018 when SBI Holdings introduced it as a trading line for cryptocurrencies. The exchange launched its cryptocurrency lending service in November last year, which allows traders and investors to borrow Bitcoin at 1% interest. The company is now adding XRP to its credit service and plans to add Ether (ETH) in the future.
SBI has had a relationship with Ripple, the XRP-affiliated blockchain payment company, over the years. XRP went on a roller coaster ride a few months after falling in value in December. The US Securities and Exchange Commission sued Ripple in court late last year, accusing the company of violating securities laws by selling the cryptocurrency as an unregistered security.
XRP saw prices drop more than 60% in just a few days, and several crypto exchanges have removed it from their platforms. The cryptocurrency rebounded over the weekend as investors tried to raise the price. However, XRP failed to sustain its rally and quickly lost 40% of its value. It’s slowly recovering after rising nearly 12% in the past 24 hours.
While several cryptocurrency exchanges like Coinbase and OkCoin have stopped XRP trading, SBI said they would not delist it because XRP is not considered a security in Japan. Ripple executives believe that XRP will survive as it is not considered a security in several parts of the world.