SBI Holdings, one of Japan’s financial giants, is under growing pressure to go all-in on XRP. GAM Investments, a global asset manager, has urged SBI to focus more on its XRP holdings, suggesting that the company adopt a bold strategy to realize its hidden potential.
Meanwhile, Ripple’s native token, XRP, has become the center of attention, surging an incredible 500% in just one month.
Why XRP Matters to SBI?
For years, SBI Holdings has been a strong supporter of Ripple and blockchain technology. The company holds an 8% to 9% share of Ripple Labs and owns a substantial amount of XRP tokens. Despite this, SBI’s market value doesn’t seem to reflect the true worth of these crypto assets.
GAM pointed out that SBI’s current market capitalization of JPY 1.2 trillion is far below the estimated JPY 1.6 trillion value of its Ripple and XRP investments. This creates a significant gap between the company’s actual net asset value (NAV) and its perceived market value.
A Game-Changing Proposal
GAM believes SBI has a unique opportunity to follow in the footsteps of companies like MicroStrategy, which made headlines by heavily investing in Bitcoin. They suggested that SBI start buying XRP directly from the market, creating a buyback program that could boost the token’s value while showcasing SBI’s commitment to cryptocurrency.
With this approach, GAM believes this strategy could increase SBI’s market value, bringing it closer to its estimated worth of JPY 3.9 trillion. By reducing the supply of XRP in circulation, the program might push up its price, benefiting both SBI and the crypto market as a whole.
Ripple’s XRP Growing Popularity
XRP has become one of the most talked-about cryptocurrencies in the market recently. The token is attracting a lot of attention, thanks to the launch of RLUSD and growing excitement around a potential XRP ETF approval.
As of now, XRP is trading at around $2.39, showing a slight dip of 1.2%, with a market cap of $136.76 billion.
