SBI Group, a Japanese company, intends to strengthen its Web3 business actively. The company aims to attract institutional clients who can benefit from its expanded Web3 offerings and crypto-centric services. It is widely known that SBI holds a prominent partnership with Ripple, suggesting that it will leverage Ripple’s offerings to facilitate its business growth.
Recently, the company published its financial results for the fiscal year ending on March 31, 2023. The report emphasized SBI VC Trade’s commitment to enhancing its customer and revenue base, not solely through the crypto asset exchange business but also by reinforcing its Web3-related activities.
More specifically, the company seeks to pioneer new business domains like Web3, which introduce innovative technologies domestically and internationally, ensuring finance remains at the core while transcending traditional financial boundaries.
SBI Japan’s Crypto Revenue Declines, Embracing Web3 for Growth
In a recent annual investors report, SBI Japan made a disclosure. The report specifically states that the company’s revenue from its crypto-related business during the period from April 2022 to March 2023 amounted to 30.3 billion Japanese yen. This figure represents a year-on-year decline of 45% compared to the value of 55.1 billion yen recorded last year.
Under the category of “non-financial business,” the company revealed its plans to actively enhance its presence in the Web3 sector to expand its customer base and increase revenue. Previously, SBI Japan primarily focused on its crypto customer base and revenue derived from the crypto assets exchange business facilitated through SBI VC Trade.
The proposed shift in business model recently caught the attention of WrathofKahneman, a well-known influencer in the XRP community. They drew attention to a graphic featured in SBI Japan’s annual report, highlighting this strategic transition.
SBI Exploits Ripple’s Offerings to Drive Business Growth
In a related development, SBI Remit has actively integrated support for its mobile MoneyTap application into three local banks in Japan, namely Yamaguchi Bank, Momiji Bank, and Kitakyushu Bank. This move signifies the significant progress made by the Ripple-powered payment system MoneyTap
The graphic reveals SBI Japan’s action plan to strengthen its Web3 offerings and crypto-related services through a focused approach to SBI VC Trade. One of the highlighted crypto-related services is Ripple’s ODL, which SBI Remit, an SBI subsidiary, offers to clients.
In July 2021, Ripple expanded its partnership with SBI Remit to introduce the On-Demand Liquidity product in Japan, connecting SBI Remit, SBI VC Trade, and Coins.ph on RippleNet for streamlined cross-border transactions.
The graphic in the recent SBI Japan report emphasizes Ripple as a provider of crypto-related services utilizing XRP and the XRP Ledger. However, there is limited information available regarding the specific services Ripple will offer to SBI Japan’s clients as part of their Web3 expansion efforts.
To expand its Web3 business, SBI Japan launched the Web3 Wallet product in January, positioning it as Japan’s first custodial wallet supporting NFTs. Additionally, the company forged partnerships with Web3 firms Oasys and Turingum.
It is worth noting that Ripple and SBI Holdings have maintained a partnership since 2016 through the establishment of the joint venture SBI Ripple Asia. This collaboration has enabled efficient payments leveraging RippleNet over the years.
SBI Group aims to strengthen its Web3 business, leveraging Ripple’s offerings and expanding its customer base. Despite a decline in crypto revenue, SBI is actively pursuing opportunities in the Web3 sector to transcend traditional financial boundaries and drive future growth.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.