New York, Thursday, December 7– SBI Holdings of Japan and Saudi Aramco of Saudi Arabia, announced significant investments in Ripple Labs, the blockchain technology company best known for its payment protocol, RippleNet. 1
The move is seen as a major validation for Ripple and its ambitions to revolutionize cross-border payments and asset transfers. However, the details of the investment are still unknown.
The MoU signed between the two companies said they would look into “collaboration in the field of digital assets and co-investments leveraging both parties’ investment portfolios related to digital assets.” 2
SBI Holdings also announced its intention to establish a new subsidiary named “SBI Middle East,” aiming to extend its presence in the region and venture into novel business opportunities.
The funds will be used to further develop RippleNet, expand its global reach, and explore new use cases for blockchain technology in the financial sector.
The news comes at a pivotal time for Ripple, which has faced legal challenges from the U.S. Securities and Exchange Commission (SEC) over the sale of its XRP cryptocurrency.
Saudi Aramco has a track record of investments in blockchain-related firms.
In 2020, the company made its initial foray into the sector by investing millions in VAKT, a global blockchain digitization platform for commodities. In February, Saudi Aramco entered into a memorandum of understanding (MOU) with Droppgroup, a Web3 tech development platform.
Analysts believe the investments from SBI and Saudi Aramco could significantly boost Ripple’s legal battle with the SEC.
The implications of this deal extend far beyond Ripple itself. SBI and Saudi Aramco’s involvement signals a growing acceptance of blockchain technology within the traditional financial sector.
Being Ripple’s primary external stakeholder, SBI Holdings has maintained a lasting partnership since 2018. Towards the end of November, the company revealed a memorandum of understanding (MoU) with Circle, contingent upon regulatory approval, aiming to bolster circulation and offer Web3 services in Japan.
- SBI: https://www.sbigroup.co.jp/english/news/pdf/2023/1207_a_en.pdf[↩]
- SBI: https://www.sbigroup.co.jp/english/news/pdf/2023/1207_a_en.pdf[↩]
